LG Electronics, one of the famous and leading brands from South Korea introduces its move to withdraw from the smartphone market because of huge losses. The brand is in the losses from six years that total up to $ 4.5 billion approximately. This drop out from the market will help LG to focus on its growth in other electronic areas. Currently, the global share of LG is only about 2 percent. It shipped about 23 million phones last year which compares with 256 million for Samsung.
Park Sung-soon, an analyst at Cape Investment & Securities said, “In South America, Samsung and Chinese companies such as Oppo, Vivo, and Xiaomi are expected to benefit in the low to mid-end segment”.
Other mobile brands like HTC, Nokia, and Blackberry have also experienced a massive drop in its sale, bringing the brands to the edge of dissolving. However, LG has also stated that it will continue to offer software updates and support for its existing mobile devices. In South Korea, the employees of the mobile division will be shifted to other businesses run by LG Electronics and associates while in another place decisions on employment will be made at the local level.
LG becomes first major smartphone brand to withdraw from market https://t.co/Df6r1sDRiD pic.twitter.com/cWbrod8MfN
— Reuters (@Reuters) April 5, 2021
