13.1 C
Tuesday, April 20, 2021

LG’s mobile phone business closed worldwide due to losses

Must read

UK Time Newshttps://www.uktimenews.com
UK Time News is your daily dose of Latest News, Entertainment, Music, Fashion, Lifestyle, World, Cricket, Sports, Politics, Tech, Business News Website. We provide you with the Latest Breaking News Straight from the UK & all around the World on different categories.

South Korean LG Electronics on Monday said it would end its loss-making mobile division – a move that is expected to make it the first major smartphone brand to pull out of the market altogether.

Its decision to pull out will leave its 10% share in North America, where it is the No.3 brand, to be swallowed up by the smartphone titans Apple and Samsung Electronics.

The division recorded nearly six years of losses totaling some $ 4.5 billion (roughly Rs.3,010 crore), and abandoning the fiercely competitive industry would allow LG to focus on growth areas such as components of electric vehicles, connected devices and smart homes. said in a statement.

READ  Vivo V21 5G to launch in India soon with 44 megapixel selfie camera
READ  Mi 11 Ultra uses Mi Smart Band 5 display as secondary screen: report

In better times, LG entered the market early with a number of cellphone innovations including ultra wide angle cameras and was once in 2013 the third largest smartphone maker in the world behind Samsung and Apple. .

But later, its flagship models suffered from both software and hardware crashes which, combined with slower software updates, saw the brand steadily slip in favor. Analysts also criticized the company for its lack of marketing expertise compared to its Chinese rivals.

Currently, its global share is only around 2 percent. It shipped 23 million phones last year, compared to Samsung’s 256 million, according to research provider Counterpoint.

Besides North America, it has a significant presence in Latin America, where it ranks 5th.

READ  Google Assistant rolls out new feature to find lost iPhone

“In South America, Samsung and Chinese companies such as Oppo, Vivo and Xiaomi are expected to benefit from the low to mid segment,” said Park Sung-soon, analyst at Cape Investment & Securities.

While other well-known mobile brands such as Nokia, HTC and Blackberry have also fallen from heights, they are not yet completely gone.

LG’s smartphone division – the smallest of its five divisions, accounting for around 7% of revenue – is expected to close by July 31.

READ  Mi AI smart speaker (second generation) launched with 8W output

In South Korea, the division’s employees will be transferred to other LG Electronics companies and subsidiaries, while elsewhere, employment decisions will be made at the local level.

READ  Google App Store privacy labels: what they mean for your data and privacy

LG will provide service support and software updates for existing mobile product customers for a period that will vary by region, he added.

Talks to sell part of the business to Vietnamese Vingroup have failed due to differences in terms, sources with knowledge of the matter said.

© Thomson Reuters 2021

What is the best phone under Rs. 15,000 in India right now? We discussed this on Orbital, the Gadgets 360 podcast. Later (starting at 11:54 PM), we talk to OK Computer creators Neil Pagedar and Pooja Shetty. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, and anywhere you get your podcasts.


More articles


Latest article