LG OFFICIALLY ANNOUNCED IT'S WITHDRAWING FROM MOBILE MARKET


Earlier, we have reported that LG is going to shut down it's smartphone business. And today, the South Korean manufacturer published a statement announcing it totally stops the production and sales of the mobile business unit.

Nevertheless, it company will remain to sell the existing LG smartphones. Plus, LG will continue to provide warranty service, support, and software updates for a "period of time", .Depending on the country & region the company anticipates to finally closing down the mobile business by July 31. Until then, it will be working with the distributors and business partners for the closure of the smartphone division.

The main motivation for such a declaration is the continuous growth of competition, while the company’s performance had been continuing to sluggish. The firm will dedicate it's resources to enhance the quality and efficiency of internal resources, concentrating on the improvement of the core business, and restructuring the business formation.

So it looks like, LG’s long-lasting history of 26 years in the smartphone market sadly comes to the end.


LG'S LONG HISTORY ON MOBILE MARKET



LG Electronics had started manufacturing mobile devices in 1995. At that time, the mobile phone market had not yet entered the era of smartphones. LG could offer excellent models with the band's own fashion. Interestingly, the firm has had a lineup of mobile phones named after desserts. Between the copycats, the LG Chocolate was the most famous model. 

Then, LG revealed an Ice Cream Phone. Both lineups came with an exceptional look.

In 2008 for the first time, LG’s mobile phone sales surpassed100 million.

In 2013, it grew to the world’s third-largest smartphone maker, behind only Samsung and Apple.

These enabled LG to grab the last chance before the appearance of the era of smartphones. After entering the top of the market, LG"s phone business began to decline.





In 2015, LG devices started losing their popularity.

In 2017, as the brand's financial report revealed, the company sold 13.9 million smartphones. The 4th quarter results reveal that the loss of its mobile phone division approached $190 million. And it has been growing year by year since then.

In 2018, LG officially declared its departure from the Chinese smartphone market and cancelation of the premium series.

In 2019, LG announced it will be outsourced low- and mid-range smartphones from others ODM. At this time, this move indicated to give up LG's smartphone business.

In 2020, LG’s smartphone business performance displayed no signs of improvement.

According to Counterpoint Reacharce data, in the 3rd quarter of 2020, LG  shipped were 6.5 million smartphone units, lower than the 7.2 million units in the same quarter in 2019. It barely held 2% of the global smartphone market. As a reference, Samsung’s shipments in the same quarter were almost 80 million units, 12 times greater than LG's.

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