South Korean LG (SEO: 066570) may be the third largest mobile-phone maker in the world, but its cellphone division is not profitable. To that end, LG Electronics’ CEO Nam Young has resigned taking responsibility for poor management. Koo Bon-joon, the head of trading firm LG International will take over, reports Reuters. The top management change comes within a week of Nokia (NYSE: NOK) replacing Olli-Pekka Kallasvuo with Stephen Elop, a Microsoft (NSDQ: MSFT) executive.
LG’s mobile business reported a record loss last quarter and warned of a similar loss this quarter. The company has been unable to successfully make the transition from being a low-cost feature phone provider to a company that can produce high-end handsets that rival the iPhone. LG might have started falling behind in the smartphone race when it placed its bets on Microsoft