Just recently, LG Electronics announced that it is shutting down the smartphone manufacturing unit to focus on other tech areas such as electric vehicle components, smart homes, robotics, business-to-business solutions, artificial intelligence, etc. However, the company took this decision due to years of losses and raised competition.
According to the latest information, TrendForce stated that LG mobile phones can neither compete with Apple or Samsung for the high-end market nor can it beat domestic mobile phone brands in the low-end market. Therefore, the original market of LG is most likely to be grabbed by Samsung and OPPO.
The researchers pointed out that in order to avoid continued losses, LG ended its mobile phone business not unexpectedly. As the company’s markets for mobile phones are in South Korea, Europe, and Southeast Asia, its European and South Korean markets are expected to be replaced by Samsung, while the emerging mid-to-low-end market in Southeast Asia is expected to be replaced by OPPO.
It was reported that the shutdown of LG’s mobile phone business is expected to be completed before July 31 this year. However, some existing models of inventory may still be sold. Since the second quarter of 2015, LG’s mobile phone business has been at a loss. Last year, the cumulative operating loss of LG reached 5 trillion won.
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