On Sunday, LG became the latest legacy phone maker to quit. “The mobile phone sector is incredibly competitive” as it struggles in a market dominated by Apple, Samsung and growing Chinese manufacturers.
The South Korean company said it would close its mobile business unit by the end of July. Instead of smartphones, it will focus on smart home products, one of the largest providers, as well as electric vehicle components, robots, artificial intelligence, business-to-business products and connected devices. Other
LG’s decision to end the phone business reflects many companies’ struggles in the marketplace.Apple and Samsung have long been the only companies that have made a lot of money from smartphones, and even at times they have struggled. Consumers hold their phones longer In the past, and they are constantly on the lookout for more affordable models likeInstead of a file .
Other original phone brands such as Blackberry And Nokia faces a battle of its own, and now no company is in its original form.HMD sells phones under the Nokia brand, while TCL sold BlackBerry-branded phones before the end of last year’s Nokia and BlackBerry partnerships. Leading the QWERTY phone world, it failed to rapidly switch to touchscreen smartphones, which doomed the opportunity in the mobile market. LG, too, struggled to move to smartphones. While consumers and reviewers tend to like their devices, LG is nowhere near the market potential of Samsung or the cult following by Apple.
In 2007, the year when the first iPhones were released, LG was the fifth-largest phone vendor after Nokia, Motorola, Samsung and Sony Ericsson, all but Samsung, a minor player in the smartphone market. At present In the fourth quarter of 2020, LG was not in the top five compared to the world’s largest smartphone vendors. Even Huawei, which is facingHandling fifth place Apple, Samsung and China’s Xiaomi and Oppo are full of top four.
Over the past decade, it has become more difficult to capture consumer attention in mobile devices.LG has been experimenting with innovative designs over the past few years to attract buyers.In which one of them rotates on top of the other side And in January at CES, a parody of what it hopes will be the world’s first foldable phone. The device has an enlarged display to create a bigger, more tablet-like screen, as CNET’s Roger Cheng noted. Likely at the bottom of the phone, when in landscape mode there’s a mechanism that lets the screen fall off and unfold, similar to how it works with foldable OLED TVs. But will be smaller in size “
But with the death of LG’s mobile business, the foldable phone has come to an end.
“LG Rollable is no longer part of our product strategy in the future,” LG spokesperson Ken Hong told CNET.
LG said it will continue to sell its current phone inventory and will provide customers with support and software updates for its existing mobile devices for a period of time, which will vary by region. The company’s US business said, “more details will be provided regarding software updates in the near future.”
Meanwhile, the major US carriers said they would continue to support users of LG phones.
An AT&T spokesperson said in a statement that the wireless carrier. “Recognizing LG’s decision to leave the mobile business,” it added. “As a commitment to our customers, we will support those who use LG devices on our network, as LG makes this change.”
The third-largest U.S. carrier said it plans to continue selling through its existing equipment inventory, and “Will work closely with LG to determine the next steps”
LG is likely to lay off some employees, although many may move to other parts of the business.LG employs worldwide and manufactures phones in China, Brazil and Vietnam.The company is looking to bring the facility to build. Other products, such as TV, Hong said, but shutdowns are also possible.
“Going forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as the 6G to help strengthen its competitiveness in other businesses,” the company said in a statement. “The core technologies developed over two decades of LG’s mobile business will also be preserved and applied to existing and future products.”
CNET’s Eli Blumenthal contributed to this report.