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  5. LG CEO resigns amid slow smartphone sales

LG CEO resigns amid slow smartphone sales

LG CEO resigns amid slow smartphone sales

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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