It struggled to compete with Apple and Samsung.
Apple, Samsung, and other Chinese handset makers dominated the mobile phone sector. Despite releasing innovative handsets in the past, LG failed to compete against these companies.
In an official announcement, LG Electronics, Inc. is closing its mobile business unit. The shutting down of this unit will allow the company to focus on electric vehicle components, AI, smart homes, robotics, and connected devices, among others.
LG Mobile Phone Business Out
Its decision to shut down its phone business sector is a reflection that many companies are facing. As mentioned, Apple and Samsung dominated the sector. They take up the lion’s share.
Despite that, they still struggle at times.
Unlike before, consumers now don’t buy new phones every year. Instead, they hold onto them longer than they did before.
Furthermore, they’re no longer buying those expensive models. It’s one reason Apple released the iPhone 12 mini, a more affordable version of the iPhone 12.
More consumers want Galaxy A lineup, rather than opting for Galaxy S devices.
Joining Blackberry and Nokia
But this isn’t the first time we see a well-known company leaving the mobile business. Blackberry and Nokia couldn’t keep up with their competitors, allowing them to bid adieu.
However, you can still see Nokia phones on the market under HMD. TCL also sold Blackberry phones before the two companies terminated their partnership.
Both Nokia and BlackBerry were used to be leaders in the phone world. Unfortunately, they failed to shift quickly to touchscreen smartphones. When they did, it was already too late for them as the market has been dominated by Apple.
LG released touchscreen smartphones but the company still struggled to move in the congested market. Consumers liked its devices.
But it didn’t have the cult following of Apple. Its marketing campaigns were flat. Its smartphones didn’t have unique features that would entice buyers to choose LG phones over others.
When Apple launched its first iPhone, LG was among the biggest phone vendors. It joined the ranks of Nokia, Samsung, Sony Ericsson, and Motorola. Other players couldn’t penetrate the market.
But because of the lack of innovation, LG was left out. It didn’t rank in the top five of the biggest smartphone vendors in 2020.
Currently, the top four phone vendors are Apple, Samsung, Xiaomi, and Oppo.
LG did its best to attract consumers’ attention. During the virtual CES, it introduced a rollable phone. It was set to release the phone later this year.
The said phone’s display extends upward to create a larger screen. When it’s in landscape mode, the display furls and unfurls. But it didn’t see the light of day.
Although LG is moving out of the mobile phone business, it’ll continue to offer consumers mobility-related technologies.
“Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.” – LG News