LG electronics manufacturer has pulled out of the smartphone business
There is less competition in the competitive smartphone market. The Korean company LG is giving up the mobile division. They want to focus on areas that are growing the fastest.
South Korean electronics manufacturer LG The losing smartphone division shuts down. LG Electronics announced that the board of directors approved the move on Monday. It is a strategic decision to withdraw from the region with “incredibly strong competition”. After years of losses in the split, the withdrawal of what was previously the world’s third largest mobile phone manufacturer had loomed for some time.
The company now wants to focus its resources on growth areas such as electric auto parts, interconnected devices, robotics, smart life, artificial intelligence, and inter-company solutions. The closure of the “mobile phone company” is expected to be completed by the end of July.
Devices still in stock must continue to be offered for sale. LG also wants to continue to support device service and provide software updates to its customers. Details of the employment situation will be regulated at the local level.
With smartphones, LG has been constantly losing ground
Back Samsung South Korea’s second largest electronics company in electronics also announced that it will continue to develop cellular technologies such as 6G in order to enhance its competitiveness in other business areas. 6G is the next level of ultra-fast cellular standard.
LG’s announcement of its withdrawal from the highly competitive smartphone market was not surprising. Recently, company representatives said that all options, including selling the division, are on the table. However, no details were given of the potential interested parties. The mobile division recorded an operational loss every quarter since the second quarter of 2015. For the year 2020 as a whole, the deficit was 841.2 billion won (currently: 634.5 million euros).
LG’s market share in smart phones In South Korea, national news agency Yonhap News, citing market researcher Counterpoint Research, reported that withdrawal rumors have already receded. In January and February, LG’s share was only 10 percent. Samsung’s market-leading share in February increased year-on-year by 4 percentage points, to 69 per cent.