LG Electronics (LGEAF) named founding family member Koo Bon-joon as CEO Friday, as the struggling mobile handset marker seeks to find its footing in the smartphone business. Koo's appointment to replace Nam Yong, who resigned over the company's poor recent performance, comes just seven days after rival Nokia swapped out its CEO.

Like Nokia (NOK), No. 3 global mobile phone maker LG has been struggling to develop an arsenal of smartphones that can hold their own against the surging iPhone from Apple (AAPL) and the rapid advance of rivals Samsung and HTC with their Android-based smartphones. During his three-year tenure as CEO, critics say Nam failed to respond quickly enough in developing a smartphone to compete with Apple.

LG has just a smattering of smartphones in its lineup, including the Android-based Optimus One, which launched globally this week. The company's poor showing in that segment apparently is taking a toll on its overall market share, which fell to 9% in the second quarter from 10.7% a year earlier. And the average selling price of its handsets fell 27.8% in the quarter as it battled it out with Samsung for business in the low end of the market.

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