Hot Deal Eclipsed by Chinese rivals, LG ponders smartphone future

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Dimer Of The Year 2014
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 Eclipsed by Chinese rivals, LG ponders smartphone future

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China’s increasingly dominant smartphone makers are forcing a once-formidable rival to rethink its future in handsets.

In a memo to employees, LG Chief Executive Kwon Bong-seok noted the division “has been in the red for 23 consecutive quarters…It’s time to make the best choice by judging our current and future competitiveness calmly."

  • The chance that LG could exit the mobile business underlines a reality that has become increasingly apparent for a matured smartphone market well into its second decade. Outside of Apple Inc. and Samsung Electronics Co., the industry now revolves around lower-cost Chinese manufacturers.
  • Life has been hard for smartphone players outside of Apple, Samsung and the Chinese makers. Sony Corp. once had ambitions to be a global leader in smartphones but stopped aspiring to be a major player in 2014 after taking a $1.7 billion write-off. A few years ago, Sony executives said the company had considered exiting smartphones altogether. But its strategy focusing on affluent users has enabled it to turn a modest profit. The smartphone business also meshes well with Sony’s larger videogame and movie units.
  • HTC, once the second largest Android smartphone maker after Samsung, found itself similarly squeezed out of the market, eventually agreeing to a $1.1 billion deal in 2017 with Alphabet Inc.’s Google for most of its hardware business.
  • LG, based in Seoul, had been an early smartphone success story and still controls about 13% of the US market, where China’s handset markets are largely absent, according to Counterpoint Research. But world-wide, LG has seen its market share fall from a high of 5.2% in 2015 to roughly 2% today.

China’s representing too much of the smartphone market has drawbacks, industry analysts warn. The continuing global pandemic, for example, illustrated early on how Chinese companies could be more vulnerable to threats in the region, affecting global output, said Nicole Peng, a Canalys analyst. China’s economy and factory output rebounded strongly last year, however, as the virus was contained by authorities.

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13 Comments  |  
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India wale aa rhe hai.. Micromax aur Lenovo lekar

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Nationalist wrote:

India wale aa rhe hai.. Micromax aur Lenovo lekar

Lenovo wink

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India should put more tax on foreign companies, even if they open up unit in India…and give subsidy and opportunity (unfair, but still) to local companies.
And local companies should leave the Indian funda of “chalta hai” and start improving their mentality…than only we can see good Made in India products.
Last year spend many hours in searching good Micromax phone, but it seems that Micromax is doing business for showing loss…like putting someone’s black money in market to convert it to white.
Let’s hope coming years will be good for Indian manufacturers.

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LG should learn from Samsung…they are loosing grip in every sector…

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Lg kp220 dynamite was the worst phone i had jn college took the phone just because in ads it had my crush name

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demerius2020 wrote:

Lg kp220 dynamite was the worst phone i had jn college took the phone just because in ads it had my crush name

Did you hate the phone after break up or after using the phone?

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Expand
ZIZER wrote:

Did you hate the phone after break up or after using the phone?

it was just a crush ..no hookup or breakup laughing

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LG will reportedly announce closure of smartphone business on April 5
“LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business,” according to industry sources, Thursday, adding that the company will make an official announcement at its board meeting on April 5.

When asked to address such prospects, an LG Electronics official said, “There’s nothing to comment on.”

“All we can say is that every possibility is open. Although we cannot confirm that right now, we will announce the specific direction of our mobile communications business,” the official said.

Furthermore, LG has been expanding its presence gradually in emerging sectors such as electric vehicles (EVs) and vehicle components. Last December, the company announced the establishment of a joint venture with automotive parts maker Magna International to manufacture electric motors, inverters and onboard chargers used in EVs.

Magna had been involved in Apple’s EV-manufacturing business under Project Titan. The announcement drove LG Electronics shares to their 30 percent daily limit on the day the news broke as investors hoped the joint venture could potentially join Apple’s EV business. The iPhone maker announced recently that it plans to roll out its first EVs in 2024 or later.

Although LG has not made any comments regarding the joint venture’s participation in the manufacture of Apple’s EVs, Magna International CEO Swamy Kotagiri said at a recent automotive association event that the company is ready to produce vehicles for Apple or any other carmaker. The CEO added that Magna is willing to expand its manufacturing plant if necessary to manufacture Apple-designed cars.


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LG as a company doesnt care about its final user experience and has faced the wrath due to poor software experience and lack of regular and timely software updates

Also they launch phones at 60k and within 6 months sell them at one third price of 20k
Rather than such foolish pricing launch at a resonable price of 30 to 35k and sell more by keeping price consistent and reliable

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