On April 5, Korean electronics company LG announced that it would stop manufacturing and selling smart phones.
LG officially killed the smartphone
In the official statement, LG said it would withdraw from the smartphone business. And will focus on growth areas such as electric vehicle components, connected devices, smart homes, robots, artificial intelligence, and B2B solutions for businesses. Besides a number of other platforms and services.
The amount of LG smartphones left in stock is still being sold. The policy of supporting services, updating software for products also continues with time depending on the market. The supplier and business partner will also work with LG during the exit process.
A golden age second only to Apple and Samsung
LG entered the smartphone market quite early with innovative products. Including super wide angle camera. In the first half of 2013, LG became the third largest smartphone maker in the world. Only behind Samsung (Korea) and Apple (USA).
Later, however, many of its trump card products encountered software and hardware errors with slower updates. That leads to loss of trust in customers. Analysts also pointed out another weakness of LG is its lack of professionalism and ‘superficiality’ in marketing compared to other competitors.
Although at the moment LG holds the 3rd position in North America and 5th in Latin America, it is only 2% globally. LG sells 23 million smartphones in 2020 while at the same time 256 million Samsung phones are sold.
The smartphone unit also makes up the smallest share. Only 7.4%, in its 5 main business areas. LG plans to step up the home appliances and car components sector. In 2020, LG cooperated with Magna (Canada) to produce components for electric cars.
Purchase agreement from Vingroup failed
Some partners also offered to buy the mobile division of LG Electronics, but Vingroup offered the most attractive offer. On February 22, the Korea Times, citing an anonymous source, said the deal collapsed because it could not close the price. Smartphone manufacturing factories in Vietnam and Brazil can be converted to household appliances.
LG’s decision to leave the smartphone market means that LG’s roll-screen phone project is also over. Before that, LG planned to launch a few more smartphones in the first half of this year, but the plan was dropped.