LG Mobile Phone Division Shuts Down

25th of April 2020

This is indeed a sad news for LG phone enthusiasts. One thing that would bother somebody who is using the LG mobile phone brand. Customers are still hoping that the cease of operation of LG mobile phone division will not happen as LG mobile phone is one of the leading brands available in the market. However, no matter what happens, LG mobile phone will still, and always be remembered as one of the top choice for consumers of mobile phones, not only in Korea, but most of the Asian countries like the Philippines and Malaysia.

LG Electronics, South Korea’s second-largest appliance company after Samsung, announced Monday that it is shutting down its mobile phone division, which has lost billions of dollars in recent years.

The company was once regarded as a forerunner of the Android operating system for their LG mobile phones, working with Google on the Nexus series in the early 2010s.

However, it has long struggled to increase sales due to late entry into the market and fierce competition from emerging cheaper Chinese rivals such as Huawei.

It was frequently listed among the world’s top ten smartphone manufacturers, but the last time it recorded a global market share of three percent or more was in the second quarter of 2018, according to tracker Counterpoint.

Since 2015, the unit has lost money for 23 consecutive quarters, with the cumulative deficit approaching 5 trillion won ($4.4 billion) by the end of last year.

According to the company, the division “failed to produce results” amid “intensifying price competition among major competitors in the entry-level mobile phone market.”

The decision will allow the company to “focus resources in growth areas such as electric vehicle components,” robotics, and smart homes, according to the company.

According to local reports, LG held talks with Vietnam’s Vingroup about a potential sale, but the talks fell through due to price differences.