With the laudable Nexus 5 and G2 as its most recent smartphones, you wouldn't think that LG is in need of any help in making appealing new phones and the Korean company wholeheartedly agrees. Nonetheless, a report by the Korea Times today suggests that LG is considering setting up a joint venture with Huawei in order to "revive its smartphone business." LG has moved to quickly quash that rumor, telling The Verge that "there is no discussion now or in the past with Huawei on any aspects of LG Electronics’ business."
What might be most telling about this analyst-fueled speculation is the aggressiveness with which LG has sought to extinguish it. The analyst cited by the Korea Times says LG is feeling "a sense of urgency" to improve its "fragile" smartphone business, which this year was overtaken by Huawei in the rankings for most units shipped. LG's weakness appears to be a lack of market penetration in the key entry-level segment that Huawei primarily trades in. That's where all the future sales growth is expected, as a larger proportion of India and China's populations move to smart devices.
Viewed in such light, a partnership with Huawei could actually make sense for LG, however the company remains insistent that it has no intention of engaging in one.