We all know that LG was once a leading company in the Global mobile manufacturing market, having a 10 percent share in North America. It was unfortunate to hear that LG has announced its exit from the Smartphone market, which its board of directors decided in April. Nevertheless, they are trying to penetrate different divisions now, like smart vehicle platforms.
Are you interested to know more about why LG has taken this step and what are there plans?
Read along to find out!
Reason for LG’s exit from the Smartphone Market
You might be wondering if LG had a 10 percent share in the smartphone market, why did it announce its exit?
Well, the reason is that when it launched its LG G5, it didn’t do quite well in the market. LG had figured out that things were not going as planned. It had been going into loss since 2016, and last year in 2020, the loss was up to 750 million per year! That’s a significant loss. Isn’t it?
Nobody would like to continue their business when operating at a loss for such a long time. Right? That is why they planned to shut down the smartphone division and get into the other divisions to expand their business.
Although, it will not leave its customers who are still using the LG’s mobile phones. It has decided to give service support to current users of LG’s phone for a certain period which varies on the customer’s location.
Future Plans of LG
LG is not continuing with its smartphone business as it was not generating enough revenue out of the five divisions of LG. However, it has planned to expand on different mobile-related technology areas like 6G. In this way, It won’t deviate from its core technological development during the last 20 years of operations. This expertise will help in future projects.
It is going to start focussing on Electric vehicle components, robotics, artificial intelligence, etc. In the foreseeable future, you will see just electric cars on the road. It is a much cheaper alternative to fuel-powered vehicles. In addition to that, The international energy agency estimated that by 2025 the number of EV’s on the road would reach 70 million! Now that’s a considerable number. Isn’t it?
Apart from that, as there has been a lot of advancement in Artificial Intelligence and Machine learning, Robotics technology would greatly influence our daily lives.
There must be many people who are saddened by hearing the news of the exit of LG’s Smartphone. This is because so many people were attached to it as it was the first brand that launched the flip phone. But they had to make this hard decision as the smartphone was not a very profitable business division for them any longer.
However, it will impress its audience with the future products or services it will launch, which will make our lives easier.