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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.

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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

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.

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Are You Ready For This Year’s GITEX Shopper Event?

We’re excited to be media partners of this year’s GITEX Shopper event. An extravaganza bringing together all the big names and retailers in electronics.

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are you ready for this year's gitex shopper event

GITEX Shopper, the giant 5-day electronics extravaganza, is getting ready to open its doors to the public between December 14 and 18 at the Dubai World Trade Center.

The expo brings together all of the top electronic brands and retailers and features huge discounts on all the best tech, plus prize draws, new product launches, interactive displays and much more.

Visitors to GITEX Shopper will be able to grab all of the latest products at the best prices, from gaming consoles and speakers to drones, TV sets, and even e-scooters. This 5-day shopping extravaganza offers exclusive discounts on selected items that can’t be found elsewhere, and there are plenty of shows and demonstrations at the expo to keep the whole family entertained.

To join over 100,000 people at this year’s GITEX Shopper and grab some of 2022’s biggest bargains, head over to the official website to register your interest.

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