This is the end of LG smartphones. The giant disappears from the market

The decision to withdraw means that the concern will have 10 percent. market shares in North America, where it is the No. 3 brand, and the market shares will go to Samsung and Apple, according to experts.

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LG competed with other concerns for mid-priced models

In the US, LG has been targeting mid-range - if not ultra-low-priced models - meaning Samsung, which has more mid-priced product lines than Apple, will be better able to attract LG users, Ko Eui-young said. , analyst at Hi Investment & Securities.

LG Electronics fans bemoan end of era as firm exits smartphone business https://t.co/ByQ5tX9xFH pic.twitter.com/8P7VwNItez

- Reuters (@Reuters) April 6, 2021

LG's smartphone department has been loss-making for 6 years - a total of 4.5 billion dollars

The shutdown of smartphone production is not accidental or sudden - according to Reuters, LG's smartphone division has been suffering losses totaling around $ 4.5 billion for almost six years.

At the same time, experts estimate, abandoning the extremely competitive sector would allow LG to focus on growth areas such as electric vehicle components, network devices and smart homes.

LG introduced many innovative solutions in smartphones, but was losing the competition due to software bugs

In better times, LG introduced a range of innovative mobile phones to the market early, including ultra wide-angle cameras, and in 2013 was the third largest smartphone manufacturer in the world, after Samsung and Apple.

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But later its flagship models suffered from both software and hardware bugs which, combined with slower software updates, kept the brand from catching up with the competition.

Analysts also criticized the company for its lack of marketing expertise compared to Chinese rivals.

While other well-known mobile brands such as Nokia, HTC, and Blackberry have also been shrinking market shares, they have yet to completely disappear nonetheless.

LG's smartphone exit: who stands to gain? https://t.co/JJ9Y0wTCsl pic.twitter.com/QsasdfSyh7

- Reuters (@Reuters) April 5, 2021

LG's current global smartphone market share is only around 2 percent - according to research by analyst Counterpoint last year LG sold 23 million phones, Samsung - 256 million.

LG's smartphone division, the smallest of the company's five divisions, generating around 7% of revenues, is expected to close by July 31.

In South Korea, branch employees will be transferred to other LG Electronics companies and affiliates, while elsewhere employment decisions will be made locally.

Analysts said they were told during the conference call that LG plans to keep its core patents for 4G and 5G technology, as well as core R&D personnel, and will continue to develop communication technologies for 6G.

LG will provide service support and software updates to customers of existing mobile products for a period that will vary by region.

Reuter, jk