LG will shut down smartphone business
Unfortunately, it’s the end of an era for the phone giant who was at some time at the top of the list of smartphones. LG will shut down smartphone business because of the tough competition with Apple, Samsung and other Chinese brands. Last Sunday, LG announced to exit the incredibly competitive mobile phone market which was dominated by Apple, Samsung and other rapidly growing Chinese brands including Xiaomi. Over the past decade, LG has rolled out many unique designs of their mobile phones just only to attract buyers. But all their efforts went in vain.
Moreover, the South Korean tech company further announced that it will close its mobile sector unit by the end of July this year. Fortunately, Instead of making smartphones, it will focus on smart home products that include:
- Making electric vehicles and their components
- artificial intelligence (AI)
- business-to-business products (B2B); and
- digitally connected devices
LG and other big companies:
LG’s decision to shut down its smartphone business reflects the struggle, problems and competition faced by other big companies in the market. Apple and Samsung have been making significant amounts of money from their smartphones since their company launch. Even though, these companies have struggled at times. These big companies and are increasingly giving out affordable models, like Samsung’s Galaxy A series. In 2007, when the first iPhone went officially, at that time LG was the fifth biggest smartphone company following Nokia, Motorola, Samsung and Sony Ericsson.
All the companies, except Samsung, today are small players in the smartphone market. Furthermore, in the fourth quarter of 2020, LG didn’t even rank in the top five companies of smartphone manufacturer. Even Huawei, which is facing US sanctions, is placed at fifth place Apple, Samsung, Xiaomi and Oppo filled the other top four spots of leading smartphone manufactures
Over the past decade, it’s becoming harder to get consumer attention for LG. But with the end of LG’s mobile business, it means it would also be the end of the rollable phone. LG spokesman told the website that LG Rollable smartphone is no longer a part of their product strategy that was announced in the previous year.
However, LG announced that it will continue to sell current phone devices that are already being manufactured. Moreover, the company will provide service and software updates to the customers of existing mobile devices of LG.