LG has replaced its Chief Executive Officer in the wake of record losses at its mobile phone division.
Nam Young, who tendered his resignation “to take responsibility for the [company’s] flagging performance”, will be replaced by the younger brother of LG Group Chairman Koo Bon Moo’s younger brother Koo Bon-joon.
His departure comes after Nokia’s CEO Olli-Pekka Kallasvuo was sacked and replaced by Microsoft business manager Stephen Elop. Nokia has also suffered from a decline that has seen its market capitalisation fall by two-thirds since 2007.
Mr Kallasvuo will be followed out of the door by Anssi Vanjoki, Nokia’s Mobile Solutions Head, who resigned a matter of days later.
Not much more than a year ago LG was announcing bumper sales of five million units for its mid-range favourite the Cookie and appeared to be well placed to continue to challenge the likes of Apple and Nokia for market share.
However, a sea change in consumer buying habits has seen high-end smartphones replace LG’s relatively underpowered devices at the top of consumers’ wishlists.
LG has also been impacted by its failure to forecast the rise of the Android operating system.
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