LG Bids Adieu To Smartphone Industry As Loss Mounts; Who’s Next?

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LG has drawn the curtain on its smartphone business, bringing an end to an era of unique smartphone and mobile display technology. LG has confirmed that it would be exiting the smartphone business industry and will shift its focus on other areas like electric vehicle components, connected devices, robotics, and so on.

LG Succumbs To Losses; Bids Adieu To Smartphone Industry

 

LG Smartphone Business Comes To An End

The rumor of LG smartphone shut down has been around for a while now. The existing LG smartphones in the market will continue to remain on sale, LG said. The South Korean company will also continue to support its smartphones, at least for a period, which will again vary by region.

LG smartphones' turnover has been running at a loss for the past five years. Despite the launch of innovative smartphones like the LG Wing, the company's smartphone department has been suffering from massive losses. To note, LG was once considered one of the biggest rivals to its South Korean counterpart - Samsung.

LG Succumbs To Losses; Bids Adieu To Smartphone Industry

Be it premium flagships or a mid-range device, LG's smartphone business has been running low. Moreover, with the rise of Chinese OEMs, LG has been facing stiff competition. The closure of the smartphone segment will bring in layoffs. However, LG hasn't mentioned anything in-depth about it, except that "details related to employment will be determined at the local level." The complete wind-up of the LG smartphone department is expected by end of July 2021.

 

LG's Unique Smartphones Won't Launch

LG has been a pioneer when it comes to unique smartphone designs. We saw this with the LG Wing with its unique swivel design. Also, LG had patented unique smartphone designs with rollable displays, foldable displays, and so on. With the smartphone department shutting down, these unique smartphones won't be seeing the light of day.

LG Succumbs To Losses; Bids Adieu To Smartphone Industry

To note, LG showed off the rollable smartphone at the virtual CES this year. LG even insisted on launching it later this year. However, it looks like the LG rollable smartphone won't be entering the market and will remain a prototype.

With the shutdown in place, LG is shifting its emphasis on other departments. LG will now "enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services," the company said in a statement.

Who's Next?

LG Succumbs To Losses; Bids Adieu To Smartphone Industry

The smartphone industry has been revolutionary but also has cut-throat competition. Chinese firms have rolled out budget and affordable smartphones along with premium flagships, with generations of upgrades entering the market on a daily basis. Several smartphone brands are struggling even today to have a business.

Looking back, LG tried to find a buyer for its smartphone business. But the talks failed and the decision to shut down was finally taken. From the looks of it, LG isn't the first and certainly won't be the last one to shut down its smartphone business. Looking back, we saw how Nokia struggled for a buyer until HMD Global struck a deal. Brands like TCL and HTC are some of the other examples of struggling businesses. It remains to be seen who else will join LG as the competition continues to rise.

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