In view of the competition from smartphones from Samsung, Apple and those from Chinese manufacturers, LG is struggling to assert itself. Also, for a while, we felt that the Korean brand was leaving this market. And on April 5, the news was made official in a press release.
“LG’s strategic decision to exit the highly competitive mobile phone industry will allow the company to focus its resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, and more. “Artificial intelligence and business-to-business solutions, as well as platforms and services,” says the company’s announcement.
However, this exit from LG did not take place immediately. In fact, the manufacturer had announced that it would complete the closure of its mobile communications division on July 31.
In any case, LG seems to have stopped producing cell phones so far. In fact, this production stop would have happened this week, according to an article by 9to5Google, which forwarded Korean media Asiae.co.kr. Although LG has already announced the closure of its cellular business, it has reportedly continued to produce equipment to meet the contracts signed prior to the announcement.
The same source states that the LG smartphone manufacturing facility in Vietnam will be moving to the production of home appliances. “Previously, LG Electronics decided to expand its home appliance production line at its factory in Vietnam, the largest smartphone production base, and to ensure the employment of local employees in the factory. Smartphones,” said Asiae.co.kr.
It is also worth remembering that even if the sale and production of smartphones ceases, LG will continue to support (in terms of software) existing smartphones.
LG already tried everything?
Before making this decision to exit the smartphone market, LG had already tried to go up with a new strategy. Essentially, LG wanted to offer smartphones with good distinguishing features from competing models.
This is how we saw the arrival of atypical models like the LG Velvet or the LG Wing. And if the manufacturer has never been interested in folding smartphones, it presents a smartphone with a roll-up screen. But unfortunately, despite these efforts, LG has not been able to gain further market share.
LG will always be present indirectly
In any case, even if LG stops manufacturing and selling smartphones, we should keep hearing from this manufacturer. In fact, he says: “LG will continue to use its mobile communications know-how and develop mobility-related technologies such as 6G in order to further strengthen its competitiveness in other business areas. Core technologies developed by LG over two decades of mobile operations are also retained and applied to existing and future products. “
It should also be noted that, for example, LG was supposed to be one of Apple’s suppliers of the iPhone 13 series screens, and a rumor recently circulated that LG and Samsung had started production of these screens.