LG Becomes First Major Smartphone Brand to Withdraw From Market Due to Losses

South Korea’s LG Electronics said on Monday it will wind down its loss-making mobile division – a move that is set to make it the first major smartphone brand to completely withdraw from the market.
Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by smartphone titans Apple and Samsung Electronics.
The division has logged nearly six years of losses totalling some $4.5 billion (roughly Rs. 33,010 crore), and dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices and smart homes, it said in a statement.
LG to Invest $4.5 Billion in Its US Battery Business for Electric VehiclesIn better times, LG was early to market with a number of cell phone innovations including ultra-wide angle cameras and was once in 2013 the world’s third-largest smartphone manufacturer behind Samsung and Apple.
But later, its flagship models suffered from both software and hardware mishaps which combined with slower software updates saw the brand steadily slip in favour. Analysts have also criticised the company for lack of expertise in marketing compared to Chinese rivals.
Currently its global share is only about 2 percent. It shipped 23 million phones last year which compares with 256 million for Samsung, according to research provider Counterpoint.

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