It might be shocking at first but its official that LG is exiting the mobile phone market till July 31. In the last fortnight of March, there have been multiple reports regarding LG bidding adieu to the smartphone market once and for all. And now it has become a hot news for the smartphone industry from Monday. On 5th April, 2021 company’s board of directors confirmed the closure of LG smartphone industry. He cleared that the company had to suffer from long slump and stiff competition.
With this announcement LG has become the first major smartphone brand to completely withdraw from the market. Currently, it has 10% share in North America. In North America, It is one of the best smartphone brand ranking on #3 after Apple and Samsung electronics. Till now, it world be the best choice to be gobbled up by smartphone titans there.
LG demonstrated that the company is no longer able to find a buyer. Eui-young, who is an analyst at Hi investment and securities says that in the US alone LG targeted mid priced mobile models like Samsung. But Samsung has more mid priced product lines than Apple. Thus, Samsung is better able to attract LG users.
Company’s smartphone division had a total loss of $4.5 billion in the past 6 years alone. That’s why company took a decision to completely drop out of fiercely competitive sector. With this the brand will focus more on other growth areas such as electric vehicle components, connected devices and smart homes.
When there were the better times, LG was one of the early brands to bring cell phone innovations. For example, ultra wide-angle cameras designed by LG were at its peek in 2013. But the problem started in 2015 when its flagship models had to suffer from both software and hardware mishaps. Therefore, the phones had slower software updates and they steadily sip in favor to buy.
Now few analysists also criticized the company’s marketing and advertising techniques compared to its Chinese rivals. According to research provider Counter point, LG shipped 23 million phones in 2020. On the other hand, its exact opponent Samsung shipped 256 million smartphones.