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LG withdraws from the smartphone market

 LG withdraws from the smartphone market

The South Korean company LG is planning to end its losing mobile division after failing to find a buyer, a move that is set to make it the first major smartphone brand to withdraw completely from the market.

LG withdraws from the smartphone market

Its decision to withdraw leaves its 10 percent stake in North America, where the brand ranks third, to be devoured by Samsung and Apple, with its domestic rival expected to have an advantage.

In the United States, LG has targeted the mid-range models, and this means that Samsung, which has more mid-range devices than Apple, will be more able to attract LG users.

LG’s smartphone division suffered losses for six years, totaling about $ 4.5 billion.

The company said in a statement: The withdrawal allows LG to focus on areas of growth, such as: electric vehicle components, connected devices, and smart homes.

LG pioneered this early market with a number of mobile phone innovations, including ultra-wide-angle cameras, and in 2013 it was the third-largest smartphone manufacturer in the world after Samsung and Apple.

But its flagship models suffered from software and hardware issues, which along with slow updates resulted in the decline of the brand.

Analysts also criticized the company for its lack of marketing experience compared to its Chinese competitors.

While other well-known smartphone brands such as Nokia, HTC, and Blackberry have declined, they have not completely disappeared yet.

  • LG's current global share is only about 2 percent, and it shipped 23 million phones last year, compared to Samsung's 256 million.

  • In addition to North America, it has a large presence in Latin America, where it ranks fifth among the brands.

  • The company's smartphone division, the smallest of its five divisions, is expected to be completed by July 31.
In South Korea, department employees are transferred to its other subsidiaries, while employment decisions are made elsewhere at the local level.

The company plans to hold core technology patents for 4G and 5G networks, as well as basic research and development personnel and continues to develop communication technologies for 6G networks.

LG provides support service and software updates to customers of current mobile products for a period of time that varies by region.