The Smartphone industry has developed and become the most competitive business of all time.
It has come to our attention that LG is quitting this business and wants out from this ‘competitive business.’
Monday, this week, the South Korean LG, the tech company, stated that after facing losses for years, it will be closing down its mobile phone department and ending its era as the trailblazer in the world of Androids.
This department has said to finish up by the 31st July.
However, according to LG Electronics, it will continue to sell some existing models even after finishing that department.
In a statement, the company stated:
The strategic decision on exiting the highly competitive mobile phone market will let the company focus its resources in other growing areas like electrical vehicle components, smart home devices, robotics, artificial intelligence, and business-to-business solutions.
There was a time where LG was at the top when it came to manufacturers of smartphones.
According to Strategy Analytics, the research firm, In 2013, LG was one of the top three smartphone makers.
However, since the startups of Chinese Smartphone companies like Xiaomi and OPPO, the popularity of the LG devices has hugely decreased.
In fact, According to Counterpoint Research last year, LG was not even in the top seven global Smartphone makers.
However, according to Canalys, the market research firm, LG ranks third in the United States as the most popular Smartphone retailer after Apple and Samsung.
Neil Shah, the Counterpoint Research partner, and vice president stated to the CNN Business how LG will leave a ‘small hole’ in the global market share of under 2%.
He further predicts that this place will most likely get filled by Samsung in South Korea and the United States.
In January, LG had let the warning of the Smartphone business out by saying that it was looking at various options, including the selling of that department.
After LG let its decision out about quitting, people took to social media to pour out their feeling where users shared pictures of their first LG phones and loved the fact that the company was looking to become more innovative.
Marques Brownlee, a video producer, and a tech reviewer took to Twitter to say:
Pour a glass for LG Mobile. They are the reason why we have ultra-wide cameras in every new phone now.”
(It was the LG V40 Smartphone that introduced this feature to smartphones.)
Brownlee further added:
They didn’t always ace every phone, but losing this company means losing a competitor that would try new things even if they didn’t work.
Another tech video blogger, Austen Evans, wrote:
LG was not perfect, but in the market of the boring slabs, they delivered unique phone designs with great ideas and features.
LG has gotten known for pushing its limit when it comes to trying new things. In 2013, LG was the first Smartphone Company to come out with a curved screen Smartphone in the hugely competitive market.
Then, in 2015, LG came out with LG G4, the phone that could take the best high-end photos.
In fact, just last year, LG came out with WING 5G. This Smartphone had two screens and one that would rotate to 90 degrees. The aim behind this feature was to allow users to toggle with different apps at the same task more easily.
Just three months ago, the company made a huge jump in the market with a phone that one could roll out to a tablet.
CNN Business got told by Shengtao Jin, a research analyst at Canalys, that the LG Smartphone Company got known for having a Smartphone with unconventional and innovative features of years. These features were different, but most consumers did not find these features much practical.
In their statement, LG stated:
In the future, LG will continue to leverage the mobile expertise it has and use it to develop mobile-related technology like 6G
Furthermore, any core technologies that they developed over the last two decades in these departments will get saved and applied to existing and any other devices they make. ”
According to experts, this decision that LG has taken will help the company grow and develop more in the future.
After its news of closing down, its stock in South Korea closed down 2.5%.