News

LG To Withdraw From Smartphone Market Due To Ongoing Losses

After nearly 6 years of losses, South Korea’s LG Electronics has decided to completely withdraw from the smartphone market and focus on other areas instead.

Published

3 years ago

April 7, 2021

Joanna Melki

lg to withdraw from smartphone market due to ongoing losses

After nearly six years of losses, South Korea’s LG Electronics has decided to withdraw from the smartphone market and focus on other areas instead, including home electronics, connected devices, and smart vehicle components.

The total losses of the LG’s mobile division amount to $4.5 billion even though the brand currently enjoys the third place in the United States, after Apple and Samsung Electronics.

“In the United States, LG has targeted mid-priced — if not ultra-low — models and that means Samsung, which has more mid-priced product lines than Apple, will be better able to attract LG users,” commented Ko Eui-young, an analyst at Hi Investment & Securities.

For a long time, LG was considered to be one of the most innovative smartphone manufacturers, pioneering ultra-wide-angle cameras, dual-display devices, vein-tracking aerial gestures, and swappable components. Unfortunately, most of its innovations failed to gain any significant traction among consumers.

To make things even worse, some of the more recent flagship models have suffered both software and hardware problems, and professional reviewers were quick to point them out, steering potential buyers toward other brands.

LG Smartphone Market Share

Currently, LG’s global share is only around 2 percent, with 23 million smartphones shipped last year. When compared with Samsung’s 256 million shipped units, the company’s decision to withdraw from the smartphone market suddenly becomes easier to understand.

Also Read: Huawei Wants To Make Long-Range Wireless Charging A Reality

It’s also worth pointing out that successful Chinese brands, such as Xiaomi, Vivo, and OPPO, have greatly increased buyers’ expectations by offering flagship specifications at mid-range prices.

The good news is that current employees of LG’s mobile division won’t lose their jobs — at least not those who are based in South Korea. Instead, they will be moved to other electronics divisions. Owners of LG smartphones also have nothing to worry about because both service support and software updates will continue to be provided even in the near future.

News

Paymob Extends Series B Funding To $72M Amid Continued Growth

The financial services provider has secured an extra $22 million after strong performance in its core market of Egypt.

Published

19 hours ago

September 12, 2024

Nour Nasir

paymob extends series b funding to $72 million amid continued growth

Leading financial services provider Paymob has secured an additional $22 million in a funding extension, bringing its Series B total to $72 million.

The funding was spearheaded by EBRD Venture Capital, with support from Endeavor Catalyst. Existing backers such as PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures also participated, reaffirming their confidence in Paymob’s business model and potential in the regional fintech industry.

This extension comes on the back of Paymob’s strong performance in its core market of Egypt, where it has experienced 6x revenue growth since the initial Series B in Q2 2022. With the Series B extension and continued profitability in Egypt, Paymob is well-positioned to further its expansion strategy across the MENA region.

Islam Shawky, Co-founder and CEO of Paymob, commented: “We are very excited by our strong prospects in Egypt – where we hold a market-leading position – and the significant traction experienced in the UAE since launching operations there. This funding will help Paymob fully capitalize on the momentum in our established markets, as we accelerate our GCC roll-out. We remain committed to creating cutting-edge infrastructure enabling SMEs across the region to thrive in the digital economy and are proud of our continued impact”.

Also Read: Zoho Expands Qatar Operations & Releases New Survey Data

The expansion into GCC markets has been driven by Paymob’s initial Series B funding of $50 million, raised in 2022 and led by Kora Capital, PayPal Ventures, and Clay Point. The investment fueled Paymob’s growth, allowing it to launch its mobile app in 2023 and grow its merchant base by 3.5 times, now serving nearly 350,000 merchants across MENA.

Paymob has also expanded its payment acceptance suite to offer 50 payment methods through its gateway, POS terminals, and the Paymob app, providing the region’s most comprehensive fintech solution. The company recently introduced embedded checkout services for Shopify and WooCommerce, further demonstrating its commitment to empowering small and medium businesses across the region.