After a number of rumours and reports, it has finally been confirmed that LG is all set to close down its smartphone division. Reports say that the division is making loss after it has failed to find buyers for its smartphones. The withdrawal of the company will also mark the first major company to withdraw from the market. In the United States, it has a ten percent share in North America and has a position of number 3 brand. It will now be grabbed by the existing players Samsung Electronics and Apple. The domestic rival Samsung is expected to have an edge over Apple.
Ko Eui-young, an analyst from Hi Investment & Securities said that LG in the United States had targeted the mid-priced models instead of the low-cost models. Eui Young added that Samsung has more mid-priced models in its line-up when compared to Apple. This means that Samsung would be able to attract the LG customers better. LG has been facing a loss since nearly six years to $4.5 billion. Now that it is dropping out of the competitive sector, it aims to focus on the other areas like connected devices, smart homes and electric vehicle components.
There was a time with LG was ahead in terms of technology and had launched a number of innovations in the smartphone segment with an ultra-wide angle camera. It was at its peak in terms of popularity in 2013. The smartphone giant was just behind the other smartphone giants like Samsung and Apple. Downfall started for LG after some of its flagship models suffered software as well as hardware mishaps. That was combined by slower software updates. The analysts have also criticized the company for lack of expertise in terms of marketing.
Apart from LG, companies like Nokia, HTC and BlackBerry have also lost their presence in the market, but they are yet to be vanished completely.
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