South Korea’s LG To Exit Smartphone Market By July 2021
LG Electronics Inc has announced the phasing out of its mobile division after failing to find a buyer. This makes them the first major smartphone brand to completely exit the market.
The division is expected to be liquidated by the end of July this year, although the company may continue to sell some of its existing models afterwards, according to LG Electronics.
The South Korean tech giant has accumulated losses of around US $ 4.5 billion over the past six years. The abandonment of the smartphone industry will allow the company to channel its resources to its other divisions.
LG’s smartphone division is the smallest of its five divisions and accounts for around 7% of the company’s revenue.
In a statement, the company said it will focus on growth areas such as electric vehicle components, connected devices and smart homes.
Once a leading player in the market
Image Credit: Scholarloay
According to research firm Strategy Analytics, LG was once one of the world’s three largest smartphone makers in 2013.
In 2013, it produced a smartphone with a curved screen, making it one of the first electronics manufacturers at the time to launch the technology for the mass market.
However, the popularity of its smartphones has started to decline, especially with the arrival of new players like Xiaomi, Huawei and Oppo.
Emerging brands such as realme are also slowly capturing Android’s market share. While it may not yet be a popular brand, realme shipped 10 million phones worldwide in the first 14 months of its founding – a major achievement for a young company.
Even though it is still the third most popular smartphone brand in the United States after Apple and Samsung, it was no longer in the top three in the world, according to research provider Counterpoint Research.
Its current market share is around 2%, and it shipped 23 million phones last year, compared to Samsung’s 256 million. Its market share in the United States is around 10 percent.
Although it has exited the smartphone market, LG plans to retain its core 4G and 5G technology patents and will continue to develop communication technologies for 6G.
It will also continue to provide service support and software updates for customers of existing mobile products for a period that will vary by region, the brand said.
Featured Image Credit: Manufacturing.net
Our sincere thanks to