By Kim Yoo-chul
Staff reporter
LG Electronics took a slight but noticable step to bolster its presence in the rapidly growing smartphone market by releasing its first smartphone that runs on a Google-powered Android mobile operating platform in the United States.
Executives from LG, the world's third-biggest handset vendor, after Nokia and Samsung Electronics, say updated aggressive marketing promotions there will begin by teaming up with Verizon Wireless to revive its struggling handset business.
LG fairs well in feature phones and message-centric devices but has long lacked an impressive smartphone profile, allowing smaller handset players such as Apple and Research In Motion (RIM) to shine in the spotlight in relevancy and buzz-worthy devices.
Although LG's overall global handset share was around 10 percent that of smartphones was below 3 percent.
It doesn't have competitive product lineups or a proper plan to develop its own mobile platform, though LG's bigger rivals are unexpectedly busy either strengthening their internal software-related capabilities or spending more on improving operating systems.
LG's chief financial officer (CFO) Jung Do-hyeon said the company was still suffering difficulties regarding smartphones and profit recovery in handsets would be slow. Hopefully the partnership with Google and Microsoft will help it catch-up in the lucrative market, the executive added.
In the first three months of this year, the operating profit of LG's handset business dropped by 88.9 percent from a year ago, while the quarterly sales also decreased by 19.7 percent.
The launch of LG's brand-new smartphone, the Ally, is a clear example of how the Korean manufacturer is attempting to catch up in the race in the smartphone market.
It also marks the continued expansion of Google's influence in the mobile world.
Google beat iPhone maker Apple in the first quarter to become the second most popular provider, of smartphone software in the United States market behind RIM, according to a report by a market research firm NPD Group.
The phone is equipped with a 3.2-inch touchscreen and will be sold through Verizon Wireless. The device also features Wi-Fi, social networking widgets, a slide-out keyboard and the latest version of Android, according to LG.
The Ally also runs a 1-gigahertz snapdragon processor produced by chip giant Qualcomm. One of the featured apps, called Wikitude, is described as a "futuristic fusion of Wikipedia and augmented reality that overlays location information right in the viewfinder."
"Android is a key catalyst for LG for better penetration in smartphones in the United States, which takes up 50 percent of the global demand for smartphones," said Na Joo-young, a company spokeswoman.
"We are positive about gaining a greater edge than other Android-based models such as HTC's Incredible, also sold through Verizon," she added.
The phone will be available for $100 after a rebate and under a two-year contract in Verizon stores from May 20.