LG to wind down its smartphone division after failing to find a buyer
Category: #business  | By Nikita Chaurasia  | Date: 2021-04-05 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

LG to wind down its smartphone division after failing to find a buyer

LG Electronics Inc., a South Korean multinational electronics company will reportedly be winding up its loss-making smartphone division after failing to find a buyer for the same. This makes LG electronics the first major phone manufacturer to completely retire from the proliferating smartphone market.

LG Electronics' 10% market share in North America will now be captured by rivals such as Apple Inc., and Samsung Electronics. In this context, market experts reported that LG Electronics had claimed the low to the mid-range smartphone market in North America, which means that Samsung can now capture a sizeable chunk of LG’s market.

LG’s smartphone division has been recording losses totaling USD 4.5 billion for almost six years. Company representatives stated that abandoning the fiercely competitive segment would allow LG to focus on its better-performing product lines such as EV components, and smart homes & connected devices.

LG was the third-largest smartphone brand after Apple Inc., and Samsung in the year 2013, due to its frequent product innovations like the ultrawide angle camera lens. However, LG provided lesser software updates, and its models started suffering from hardware and software mishaps.

Analysts have also criticized the company for not upgrading its marketing department as per industry standards. Brands like Nokia, Blackberry, and HTC have also lost their market shares, but still, have a presence in the market.

The Electronics company’s smartphone division, which accounts for a mere 7% of its total revenue is expected to be wound up by July 31st this year.

LG will provide software updates and customer service for existing customers for varying periods depending on the specific region.

Meanwhile, Samsung Electronics Co. Ltd. saw a 45% hike in profit due to surging sales in its smartphones and home appliances segment during its January-March quarter.

Source Credit –

https://www.reuters.com/article/us-lg-elec-smartphones/lg-electronics-says-it-will-end-production-and-sales-of-its-loss-making-smartphone-division-idUSKBN2BS032

 

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

McKinsey commences job cuts focused on non-client serving teams

McKinsey commences job cuts focused on non-client serving teams

By Nikita Chaurasia

McKinsey and Co. a consulting giant entity has decided to start cutting jobs in one of the biggest rounds of layoffs for the company. This is likely to eliminate the jobs of about 2000 employees from work. The layoffs will be focused on support st...

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...

EasyJet sees a rise in bookings as customers plan their next vacations

EasyJet sees a rise in bookings as customers plan their next vacations

By Nikita Chaurasia

British multinational low-cost airline group, EasyJet, has reported a record surge in bookings for the month of January as people prioritized their travel plans for the coming year. The news comes as airlines world over start to show signs that they&...