Goodbye to LG mobiles. It had been rumored in previous weeks and LG Electronics has confirmed this in a brief statement announcing the exit of the mobile industry business to “focus on growth sectors, including electric vehicles, IoT and B2B solutions.”
The mobile industry ‘takes no prisoners’. The entry into the scene of the first iPhone was a revolution at all levels and those who were then the giants of the sector could not keep up. The best known case was that of Nokia, but in the same way they had to leave the market and ended up absorbed by other Motorola or BlackBerry companies. Others like HTC, in the top-5 in their day, are today a residual company.
In the last decade, the entry of Chinese manufacturers (Xiaomi, OPPO, ZTE …), with an outstanding price / performance ratio, have put companies that did not have the smartphone as their main product, but had in the past, against the ropes a noteworthy market share. This includes LG Electronics, a company undervalued like few in mobile phones with some great series and notable innovations, but which has definitely not been able to survive in a brutal, super-competitive market.
Goodbye to LG mobiles
LG Electronics exits the mobile market globally after its mobile division has been in the red for the past five years. The decision was rumored strongly after the presentation of first quarter results. LG has lost $ 4.3 billion in the past five years, from a losing mobile division since the second quarter of 2015.
The decision has been approved this Monday by its board of directors and communicated to the South Korean stock market regulator. No additional transactions such as sale of the entire division or of patents and IPs have been reported. Instead, the company says it will “apply core technologies developed during two decades of mobile business operations into existing and future products.”
LG says it expects to complete the liquidation of its mobile business on July 31. Except for some models in stock, that is the official date where LG phones will go down in history. “LG will work closely with suppliers and partners throughout the process of closing our mobile phone business. Details regarding templates will be determined locally, ”he explains in the statement.
LG will offer software updates and technical support customers of existing mobile products for a period of time that “will vary by region,” they say.
LG, which at the beginning of the last decade became the world’s third-largest mobile phone maker behind only Samsung and Apple, currently occupies the ninth position, with just a 2% global market share, according to the consultancy Counterpoint Research.