LG slashes smartphone sales estimates for 2011

Summary:Amidst sluggish sales, LG has been forced to slash its overall estimates for smartphone sales for 2011.

Amidst sluggish sales, LG has been forced to slash its overall estimates for smartphone sales for 2011.

According to Reuters, LG has sold nearly 50 million mobile phones this year, more than 10 million of which were smartphones. However, that was for the first six months. LG had originally planned on selling over 30 million smartphones. Thus, LG has realigned its forecast to selling over 24 million smartphones for 2011 in its entirety.

LG is expected to report a fifth consecutive quarterly loss from handset sales in the April-June period because it has failed to introduce products to challenge Apple and Samsung and due to weakening demand growth for its simpler handsets.

LG has had a number of big 4G smartphone releases this year, including the Verizon's Revolution , T-Mobile's G2X, and the 3D-enabled Thrill. However, the Revolution and G2X cost $249.99 on contract - more than the average $199.99 price tag for smartphones these days, which might sway consumers away for the time being. Additionally, given that 3D gadgets aren't exactly the norm yet, it might to be difficult for the Thrill to provide a significant boost once that one launches this summer with AT&T.

To put it into perspective, LG isn't the only mobile phone maker suffering this year. As of May, iSuppli numbers found that Motorola, Nokia and RIM have all seen a significant decline in smartphone sales from Q4 2010 to Q1 2011.

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Topics: Hardware, Enterprise Software, Mobility, Smartphones

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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