End of course for LG. In a press release, the Korean manufacturer officially announces its withdrawal from the smartphone market. It is not really a surprise for those who diligently follow the news of new technologies, many rumors announced for several months the wish of the company to separate from its mobile division. Distanced by its competitors, LG has indeed ended up admitting that the effort was no longer worth it.
China revolutionized the mobile market
Several revolutions have taken place in the smartphone market in recent years. The most important is undoubtedly that of 2007, when Steve Jobs unveiled the first iPhone. At that time, the biggest manufacturers were called Nokia, BlackBerry, HTC, LG and Samsung. With the exception of the last one, everyone finally threw in the towel.
However, at first, LG did quite well. Between the crazy concepts (LG Viewty with a real camera, LG Optimus 3D with a Nintendo 3DS-style screen, LG Flex with a curved screen, etc.) and the real successes (the G range, the Nexus in collaboration with Google), LG has quickly established itself as one of the best manufacturers in the Android universe. Its events were eagerly awaited by the media and fans of new technologies.
At one point, unfortunately for him, LG dropped out. Less innovative than before, the Korean has not sufficiently monitored his Chinese neighbors. Huawei, Xiaomi, Oppo, Vivo, OnePlus, TCL… These new players from the middle empire quickly boosted the market by slashing the price and offering, to everyone’s surprise, rather good quality products. These manufacturers then gradually expanded internationally, in particular emerging markets, absorbing the market shares of historical players like LG (or Sony). The Korean did not know at all what to do and let himself be trampled, not realizing that it would be too late at a time. Since then, LG has been trying to regain success with new original concepts (LG Dual Screen with two screens, LG Wing with swivel screen…) but these devices, not available in all markets, have been more intrigued than cardboard. LG’s market shares are ridiculous today, especially since the manufacturer abandoned some European markets such as France several years ago.
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LG’s failure is not surprising. In a market for new technologies turned upside down by Chinese brands, the historical players have less and less room. Apple and Samsung are exceptions, but nothing says that, in the future, the Chinese will not come and steal their customers (the Californian company, thanks to its positioning, seems less in danger). Among the other probable future victims of this new revolution in the smartphone market, Sony seems to us in a very bad position. He is also very weak internationally, and one day he will have to ask himself the question of his future.
In its statement, LG says it plans to focus on “Components for electric vehicles, connected objects, home automation, robotics, artificial intelligence, B2B, as well as platforms and services”. The brand also promises that it will continue to deliver several major software updates for its circulating devices, but nothing says the promise will be kept (LG has never been the king of updates).