The electronics giant LG has confirmed that it is withdrawing out of smartphone business. The company confirmed on Sunday, following LG board of directors meeting. LG will now shift its focus and resources in the fields of electric vehicle components, IoT devices, smart homes, robotics, AI and business-to-business solutions.
Just because it won’t be producing mobile handsets doesn’t mean LG is completely stepping out of the smartphone world. The company said it will use its mobile expertise to help develop 6G wireless communications, among other smartphone-related technologies.
Quick facts about LG
- The company was founded in 1958, post the Korean war.
- It was originally named as GOLDSTAR.
- Slogan – “Life’s Good”
- They invented the first capacitive touchscreen phone known as LG Prada, otherwise known as the LG KE850.
- It was the second most popular TV manufacturer as of 2015, with a 12.4% market share.
- The company was the first one to use curved screens.
- It is the second largest electronics maker, after Samsung electronics.
- The first in the world to launch a smartphone with a flexible screen.
- It’s a Korean company.
The decision to withdraw from the competitive smartphone market was taken basis the company’s last 6 year losses, amounting to nearly INR 33,010 crores (roughly $4.5 billion). The company’s smartphone division – the smallest of its five divisions, accounting for about 7 percent of revenue – is expected to be wound down by July 31.
Last year it shipped 28 million phones, which compares with 256 million for Samsung. Also, The smartphone business is the smallest of electronics giant five divisions, accounting for just 7.4% of revenue. Currently its global mobile phone market share is about 2%. Even after the withdrawal, the company still has a strong consumer electronics business, particularly with home appliances and televisions. In December it launched a joint venture with automotive supplier Magna International that will make key components for electric cars.
The unfortunate 2020 has also made smartphone makers struggled during the pandemic with sales down about 10% in 2020 mainly due to lockdowns limiting store openings.
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