LG abandons the smartphone business
LG – Life’s Good, but no more for LG mobile phone users and lovers because the company has decided to shut down its mobile phone business. The South Korean tech giant has been one of the pioneers of smartphone production besides Nokia and Samsung. The official announcement was made by the CEO Koo Kwang-mo.
LG currently has a global share of 2% of smartphones worldwide but in the last years it has been facing losses due to immense competition in the smartphone market. Reportedly during the last six years, LG has suffered loss summing up to $4.5 Billion.
Last year the company shipped 28 Million phones as compared to 256 Million phones by Samsung and 201 Million by Apple.
There have been more than one reasons for leaving the industry. The most important reason is that the industry has become quite competitive with the arrival of new players and the rapidly growing technology. Moreover, from the five business units that LG possesses, smartphones business is the smallest accounting for 7.4% of the total revenue. 5G is said to be one of the other reasons but nothing has been said about it yet. With the arrival of 5G technology, a major shift has occurred in the mobile phone industry.
But the users don’t have to panic as the company has promised to provide at least three Android updates despite their decision to shut down the production by 31st July, 2021.
Many competitors have come and go but LG will always be remembered for its amazing features, aesthetic designs, and economical prices. The company’s journey hasn’t ended here but it has shifted its focus to other areas which include Artificial Intelligence, robotics, smart homes, electric vehicle components, connected devices, and business-to-business solutions.