LG had said in January 2021 that it was considering an exit. from the smartphone market. After three months, it’s now confirmed that the South Korean electronics giant will completely exit the smartphone space.
The decision isn’t surprising as the brand has struggled to get a foothold in the rapidly evolving smartphone industry. The division has posted losses totaling US$ 4.5 billion in the last six years.
According to LG, the mobile phone business wind-down is likely to be completed by July 31. It also confirms that phones like the rumored LG V70 ThinQ, LG G10, or LG Velvet 2 won’t be seeing daylight.
While Samsung and Apple are the two biggest players in the smartphone market, LG has suffered from its own hardware and software issues. In the end, it just couldn’t provide a consistent and premium experience. Despite unique offerings and experimenting, it just couldn’t carve a niche for itself.
It shipped 28 million phones in 2020, according to Counterpoint Research. Samsung, on the other hand, shipped a whopping 256 million. And, the phone division contributed just 7.4 percent of revenue to the company’s primary balance sheet. It tried to focus on developed markets with a brand new strategy, but even the Velvet couldn’t save the sinking boat.
The fall of LG feels like a cyclic effect as we’ve seen legends like Nokia, BlackBerry, and HTC go down the same path. The phone makers have an incredible lineage and shall always bring back old memories. But the brutal smartphone industry is also a reminder that technology is changing every second, and there’s no place for a relaxed brand.