LG Electronics is one of the biggest production units in South Korea. With over US$55.91 billion sales reached in 2014, the cooperation made a huge success over years. The company develops different gadgets like Television, refrigerator, smartwatches, washing machines & mobile phones. Recently, LG faced a huge loss in the mobile division so they announced yesterday to withdraw from the smartphone market due to losses.
LG’s smartphone division has faced nearly six years of losses totalling a sum of around $4.5 billion. LG was one of the most popular brands to launch some stunning smartphones back in 2013. But the company started facing a loss after its competitors like Samsung, Huawei boosted its productions of Smartphones. LG was early to market with a number of cell phone innovations including ultra-wide-angle cameras and at its peak in 2013. It was the world’s third-largest smartphone manufacturer behind Samsung and Apple.
But later, its models suffered from both software and hardware problems which combined with slower software updates saw the brand steadily slip in favour. In addition, LG has been criticised by the media company for lack of expertise in marketing compared to Chinese rivals.
LG is now focusing on growth areas such as electric vehicle components, connected devices and smart homes.
LG withdrew from the phone market. However, LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region.