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Just recently, one of the top 5 electronics companies from South Korea, LG Electronics has made a concerning announcement for its smartphone enthusiasts. The company has announced that it will stop the production and sales of the smartphones that have been causing loss to the company.
Therefore, the company has decided that the smartphone division that is causing loss to the company will be shut down. With the announcement, LG Electronics has now become the first company to have fully withdrawn from the smartphone market following losses in sales.
According to the stats, once the company pulls from the smartphone industry, it will be leaving a huge share in the smartphone market. At present, LG Electronics has a 10% share in North America, which is one of the largest smartphone markets in the entire world.
Once LG pulls back, it will give a chance to the largest smartphone manufacturing giants, Samsung and Apple to compete against each other and acquire most of the 10% share left by LG Electronics.
LG Electronics has revealed that the smartphone division has been facing losses for the past 6 years. Over the course of the stated time, the losses incurred by the company have hit all the way up to $4.5 billion.
LG Electronics has announced that once the company pulls out of the market, it will be able to focus on other electronics. The company has revealed that it has managed to increase its sales in other electronic while facing loss in smartphones. Therefore, the company will be exerting its resources in other electronics sectors.
The company has announced that it will be focusing more on sectors such as smart homes, connected devices, and electric vehicle components.
Although the company has suffered a lot in the recent years of its smartphones division, the situation was not always the same for it back in the years.
In the earlier stages of the smartphone industry, LG was one of the flagships that were responsible for manufacturing some of the best phones. The company had made many names and had gained a lot of international ground when it came to its phones.
The success of the company can be measured with its prowess back in 2013, when it was the third-largest smartphone manufacturing company in the entire world.
Back in 2013, the company was ahead of the majority of the smartphone companies and was only behind Samsung and Apple.
However, after 2013, the company started suffering in terms of its hardware as well as software. The company encountered numerous mishaps that resulted in dragging the overall performance of the smartphones as well as the company.
Despite making several attempts to make a comeback with high-end and standard market smartphones, the company is still not able to make it through the strong competition.
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