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  • https://mobiletony.com - LG's official exit from the mobile phone business: The end point for a veteran

    LG's official exit from the mobile phone business: The end point for a veteran
    9 Days, 20 Hours ago


    Tags:  LG

    The possibility of LG's exit from the mobile market has been around for a long time, and some reports even talked about the collection trying to find a potential buyer. Such news, of course, was always strongly denied by the managers of this brand, and thus often did not exceed the level of unofficial speculation. A few days ago, on April 1, 2021, The Korea Times reported on Alji's decision to leave the mobile business and postponed its official release until the beginning of this week. The news has now become official with the announcement of Al-LG, and according to a statement published in the newsroom of this brand, Al-LG will leave the global mobile business by the end of July 2021.

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    The unhealthy situation of the LG mobile sector is not hidden from anyone, where for nearly 5 years There has been no news of profitability in this series before, and its losses amounted to a new record each time; The mobile sector has suffered $ 1 million in losses over the years, with other subsidiaries of the company often showing positive and promising conditions; For example, LG's financial report for the whole of 2020 shows $ 2.85 billion in operating profit versus more than $ 750 million in mobile losses. Thus, at least in terms of figures, leaving the business so damaging seems to be a logical and positive thing for LG's future.

    LG's statement reads: "LG's strategic decision to leave "The highly competitive mobile handsets will enable the company to focus its resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as services and platforms." Sales of the brand's current handsets will continue, of course, and LG says it will support them for a specific period of time (which will vary by region). The status of the company's mobile division staff has not yet been determined after the decision, and while rumors are circulating that they will be distributed in the home appliance sector, LG will suffice to mention that "details of recruitment and employment will be determined locally." has done.

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    Alji's exit from this market from the fruitless efforts of this collection to compete with other Mobile makers speak especially of stubborn Chinese competitors; Where Apple and Samsung at the top of the market have left almost no room for other manufacturers, and Chinese brands, especially with the decline of Huawei in the last one or two years, have almost completely conquered the market of mid-range phones.

    Other old brands in the mobile world, such as BlackBerry and Nokia, have faced similar problems in this area, and none of them are now in their original form in the market, as the current Nokia phones are sold by the Finnish company HMD. BlackBerry's presence in the market was also done by the Chinese company before the end of its cooperation with TCL last year. In 2007, when the first iPhone was introduced to the market, LG was the fifth largest mobile phone maker after Nokia, Motorola, Samsung and Sony Ericsson, but 13 years later in the ranking of smartphone makers in the final season of 2020, not only the name of LG in It is not among the top five companies, but with the exception of Samsung, all the other big ones in this category are either completely forgotten or play a very small role in this market. But over the past year or two, LG has made great efforts to survive in the industry, the most important of which are the Velvet series and the Wing rotating handset. LG recently unveiled the world's first roll-up phone at CES 2021, which has been hailed as a revolutionary design in the mobile world, but with the company's exit from the mobile world, no future for this model can be imagined. "The LG Rollable will no longer be part of our product strategy in the future," LG spokesman Ken Hong told CNET.

     � LG Rollable

    LG at the end of his statement spoke about using the experience of the mobile sector to develop technologies related to this industry such as 6G and adds:" LG's basic technologies developed during "Two decades of mobile business activity is also maintained and applied to [the company's] future and current products." LG will certainly not be the first and last brand to have no choice but to leave the business due to the highly competitive mobile phone market, and this is likely to soon be the case for other well-known brands (led by Sony and HTC). ) Will also be repeated.

    Source: LG





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