The Smartphone industry has developed and become the most competitive business ever.
It has come to our attention that LG is quitting this business and wants out of this ‘competitive business.’
Closing Down The Mobile Phone Department
Monday this week, the South Korean tech company LG stated that after facing losses for years, it would close down its mobile phone department and end its era as the trailblazer in the world of Androids.
This department has said to finish up by the 31st of 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 to exit the highly competitive mobile phone market will let the company focus its resources on other growing areas like electrical vehicle components, smart home devices, robotics, artificial intelligence, and business-to-business solutions.
There was a time when 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.
Global Market Share
Neil Shah, the Counterpoint Research partner and vice president, told CNN Business how LG will leave a ‘small hole’ in the global market share of under 2%.
He further predicts that Samsung will most likely fill this place 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 selling that department.
Social Media Feedback
After LG decided to quit, people took to social media to pour out their feelings, where users shared pictures of their first LG phones and loved 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 why we now have ultra-wide cameras in every new phone.”
(The LG V40 Smartphone introduced this feature to smartphones.)
Brownlee further added:
They only sometimes ace every phone, but losing this company meant losing a competitor that would try new things even if they didn’t work.
Another tech video blogger, Austen Evans, wrote:
LG could have been better, but in the market of dull slabs, they delivered unique phone designs with great ideas and features.
LG has become known for pushing its limits when trying new things. In 2013, LG was the first Smartphone Company to develop 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.
Just last year, LG came out with WING 5G. This Smartphone had two screens and one that would rotate to 90 degrees. This feature aimed to allow users to toggle with different apps at the same task more efficiently.
Just three months ago, the company made a massive jump in the market with a phone that one could roll out to a tablet.
CNN Business was told by Shengtao Jin, a research analyst at Canalys, that the LG Smartphone Company has been known for having a Smartphone with unconventional and innovative features for years. These features were different, but most consumers needed to find these features more practical.
In their statement, LG stated:
In the future, LG will continue to leverage its mobile expertise 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%.
LG’s decision to quit the smartphone business was influenced by intense competition and financial losses in that sector. As a result, LG shifted its focus towards other areas of its business, such as home appliances, electric vehicle components, and smart home technology.