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May 30, 2013

LG Developing Line of Non-Android, Non-Windows Smartphones: Will the Gamble Work?

By Christopher Mohr, TMCnet Contributing Writer

Based on responses at a recent press conference, LG Electronics (News - Alert) is developing a line of smartphones that will run on an alternative operating system other than Android or Windows. The move appears to be a gamble; given research data shows that there is currently an overwhelming market share for Android (News - Alert)-based phones.

While LG's European Marketing Manager, Won Kim, would not reveal specifics about the alternate operating system the new smartphone line would have, he did highlight that it would not be Android or Windows.

Marketing research from IDC indicates that LG's strategy may be a risky one. According to first quarter 2013 data, Android and iOS phones accounted for over 92 percent of shipment volume, a 10 percent increase over the first quarter of 2012. Windows, Linux and Blackberry combined for seven of the nearly eight percent of remaining market share.

One of LG’s recent Android phones, the Optimus G, has received favorable reviews, but has yet to gain significant market share since it became available last November. Part of the problem may be a lack of brand recognition in a market dominated by Samsung (News - Alert). Another problem may be that the Optimus G, while arguably a good product, is little more than a clone of Samsung’s Note II. The fact that the Optimus G is only available with AT&T (News - Alert) service is an additional obstacle to success.

For LG to rise above its status as another smartphone company living in Samsung’s shadow, it has to do something different. It is not known whether or not the alternate OS the new phone line will use is something that already exists, like a flavor of Linux, or if an entirely new operating system is in the works. Another interesting question that LG’s plans raise is whether or not the company has come up with some fresh ideas that can take the smartphone market by storm or if the move to a new operating system is an act of desperation. Industry followers will have to wait for that answer. One thing that does appear to be certain for LG though is that continuing to compete in the Android market is not a winning strategy.




Edited by Jamie Epstein
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