The South Korean company LG, announced that it is stopping the production of mobile phones, as it has been showing losses in recent years. In 2013, LG was the third largest mobile sales company, behind only Apple and Samsung. However, in the last 6 years the company has not made the expected sales, with losses amounting to $ 4,5 billion. This is due to the growing competition in the field, with Apple and Samsung, to hold the largest piece of the pie. So, in 2021 we will not see any new phone from the company. In this way the LG becomes the first major mobile phone company to retire from the area.
The share held today by LG in the purchase pie reaches 2%, a percentage that differs in some markets, such as that of the USA, in which it reaches 10% and in which it is 3η power. According to the company's analysis Counterpoint, the company made sales of 23 million phones by 2020. The company's sales Samsung, for the corresponding period, reached 256 million devices. With her withdrawal LG, companies that produce mid-range mobile phones, such as the Chinese Xiaomi, Oppo and Living will be favored and are expected to increase their sales. This is because a large number of users, who are looking for mid-range mobile phones and who chose the LG for years, they will turn to similar solutions, such as the mobile phones of the above companies, and not to the more expensive models of Apple and Samsung.
Η LG has been innovative in the past in the field of mobile telephony, other times with successful moves and other times not so much. The company has been famous in the past for the advanced cameras it has introduced to the market, with models such as LG V10 LG G6 and LG V30, to be considered innovative for their time. However, there have also been failed attempts at impressive moves, such as dual-screen phones, leather-backed phones and modular phones, which did not make the expected sales and were considered a failure.
The next day of the company
Her withdrawal LG from the field of mobile phones, which is characterized as a "strategic decision by the very competitive field of mobile telephony", initially means that the company will close its entire mobile phone production unit and rumored models such as the LG V70 ThinQ, LG Velvet 2 will never appear on the market.
Characteristic is the fact that the company's mobile telephony unit is the smallest of its five units, and contributes to date only 7% of the company's total revenue. The employees of the company in the mobile telephony unit are expected to be transferred to other units and activities of the company. It is also worth noting that LG will continue to provide technical support for some time to the company's mobile phone users.
Thus, the LG, will be able to focus more on other areas, which have more growth prospects. These include electric vehicles, interconnected devices, "smart" homes, robotics, artificial intelligence, etc. The company also intends to use its know-how in the field of mobile telephony, developing technologies related to mobility, such as 6G.
