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http://www.unwiredview.com/2011/08/17/what-a-blunder-lg-had-a-contract-to-build-first-android-phone-but-walked-away-from-the-deal/


*What a blunder. LG had a contract to build first Android phone, but walked
away from the deal*
By Staska on 17 Aug 11

Wow! Is this LG’s biggest strategic blunder or what?

According to Wall Street Journal (subscription required), back when Google
was still working on it’s mobile OS in secret, they had a deal with LG to
build the first Android phone.

Then LG backed out of the deal, and Google had to turn to HTC for the
Android launch hardware. The rest is history, as they say.

LG went on to tinker with it’s Chocolate franchise and build iPhone
wannabe’s like LG Prada and Arena. Then they made an ill fated strategic bet
on Windows Mobile in early 2009, just as Microsoft was end-of-lifing the OS
and switching it’s development resources to Windows Phone 7. Leaving LG
without the needed expertise and competitive hardware and in 2010, just as
smartphone growth exploded.

I wonder what prompted LG to drop Android back in 2007? My guess – it was
LG’s hubris.

Remember – 2007 was the year the first iPhone launched with great success.
And LG was the only company in mobile who had a very similar device, that
was almost ready to ship on the day Steve Jobs announced iPhone. That was LG
Prada KE850.

LG’s contract with Google for the first Android phone must have been for a
Blackberry look alike device, just like those first Android prototypes. Come
to think of it, I actually never heard who made those first prototypes.
Could it have been LG?

When Google decided to reset it’s Android development efforts, and make a
full screen touch phone, LG balked. In their minds – they were far ahead of
the industry to make a true iPhone competitor. In early 2007 LG managers
were walking around and telling everyone who’d listen that Apple stole LG
Prada design to make an iPhone. And they already had LG Viewty, a phone far
ahead of iPhone in every spec you can name, in advanced development stage.
All LG needed to do, was to tweak their software a bit and they will have a
true iPhone killer. Why the heck would they share their touchphone lead with
Google?

Only tweaking that software to make a desirable touch phone turned out not
to be as easy as it seemed at first. Even LG Arena, a touchphone launched
two years later – in 2009, with a fancy S Class touch interface, was a
usability nightmare compared to iPhone.

In the meantime, HTC went on to build the first Android smartphones, bet
heavily on Google, and today is the 4th most important player in smartphone
market. Shipping tens of millions of devices and raking in tons of cash.

While LG’s mobile division is bleeding money, and is still considered to be
a bit player among smartphone vendors.

-- 
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