LG Announces Optimus 2X, a Dual-core Flagship Smartphone for the Korean Market

Event Summary

December 16, 2010 - LG Electronics unveiled the LG Optimus 2X with a dual-core processor, the 1 GHz NVIDIA Tegra 2. The LG Optimus 2X runs Android 2.2 and will be upgradable to Android 2.3. The Optimus 2X has a 4” WVGA screen, and 1080p HD video playback and recording with HDMI mirroring that expands content on external displays to full HD. It will be available in Korea next month with countries in Europe and Asia to follow. No pricing or North American availability was announced.

Quick Take

Analytical Summary

• Current Perspective: Positive on LG’s Optimus 2X – even though U.S. distribution is an open question mark – because the Optimus 2X gets the company into the competitive mix with market leaders at the high end of the smartphone market for the first time, and returns LG to its comfort zone of pioneering new technologies. LG was so late to market with competitive smartphones that it has been forced to compete on price with mid-tier Android devices to get shelf space in the U.S. The Optimus 2X should greatly help LG’s margins, and it can use strong sales in Asia and Europe to argue for a spot at U.S. carrier with variants suited to U.S. carrier networks (the version announced here will not work on U.S. 3G or 4G networks regardless.)

• Vendor Importance: Very high to LG, because the company ignored the smartphone market for too long (particularly in the U.S.) and then made a terrible bet on Windows Mobile just as Microsoft killed the OS in favor of Windows Phone 7. When LG tried to use Android to make up the difference it found itself locked out of carrier shelf space and thoroughly outclassed by rivals at the high end of the market.

• Market Impact: Moderate on smartphones in the U.S., because while dual-core smartphones are sure to become a trend, it does not appear that LG has gotten U.S. carrier distribution for this one. In Korea, the Optimus 2X should do some damage to Samsung’s strong-selling Galaxy S line. In other Asian markets and Europe its impact will be felt most by Samsung and HTC. However, even in the U.S., the Optimus 2X should be seen as a leading indicator of a clear trend towards dual-core processors for high end smartphones where increasing processing power needs must be balanced with battery power needs.

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Response & Recommendations

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