First Published on Sichwa News Apr 5, 2021
South Korea’s LG Electronics announced an exit from Phone-making business so as to focus its resources to other areas.
The company will get rid of handset business unit by 1st of July but continue offering aftersell services to LG phone users.
“Amid the market situation, the company has decided to use internal resources efficiently and focus on competitive businesses for future growth,” the company reported in a statement.
The company announced that it will reallocate its 3700 staff to other LG business affiliates such as home appliance and automotive parts manufacturing unit.
LG leaves behind a legacy in phone business with some of the most celebrated phone brands dating back from 1995. From Cyon in 1998, LG Chocolate Phone (2005) selling 20 million units globally, LG shine phone (2008), KP100 and KG270, Optimus G in 2012 and 3G Phone in 2014.
LG was the largest phone manufacturer globally until 2008 when Apple’s IPhone came into play.
LG’s Phone business began facing downhill fall from 2015 when it released its V10 in 2015 model as the gadget saw criticism for technological deformity.
The release of LG Velvet and LG wing in 2020 also did not surpus a 100,000 unit sale.
In 2020 LG had a 2.2 percent of global phone market share according to Strategy Analytics.
As reported by The Elec, in 2021, Apple ranked first in brand loyalty. This was followed by Samsung, OnePlus, Xiaomi and then LG. In market share, LG is ranked 10th.
This trend vividly show the cut-through competition that LG had been facing before its board of directors announced to bow out of phone making business.