LG Electronics Dumps the Smartphone Game, Passes the Baton to Apple & Samsung
Why Didn’t LG Keep Trying?
After six brutal years, LG’s mobile arm had racked up a $4.5 billion loss haul. With sales flatlining at 2 % of the global market and only 23 million phones shipped last year, the company decided it was wiser to pull the plug. The shutdown will be complete by July 31, the smallest of LG’s five divisions accounting for about 7 % of its total revenue.
What Happens to the 10 % North American Share?
- Apple – the current No. 1 brand – ramps up its mid‑priced lineup.
- Samsung – already a mid‑price juggernaut – will swoop in for LG’s fans.
- LG’s target niche (mid‑priced or ultra‑low models) will likely be absorbed by Samsung’s broader middle‑market offerings.
Latin America: Where LG Still Holds Ground
LG is the fifth biggest brand outside Korea, especially in Latin America. Chinese competitors Oppo, Vivo and Xiaomi barely touch the U.S. market because of diplomatic snags, but their mid‑range portfolios shine in the region now that LG’s presence has vanished.
Redirecting Focus: Electric Vehicles, Smart Homes & 6G
LG says it’s pivoting to high‑growth sectors: EV components, connected devices, smart‑home tech, and future 6G research. The company plans to keep core 4G/5G patents and its research talent, eyeing possible 6G development and the option to license IP in the future.
Jobs & Support Post‑Exit
In Korea, LG will re‑assign its division staff to other LG businesses. Outside Korea, decisions about employment will vary by location. The company will continue to offer software updates and service for existing LG phones, though the duration of support will differ by region.
What Else Did the Stakeholders Say?
- Talks to sell a slice of the business to Vietnam’s Vingroup fell apart over terms.
- Shares of LG Electronics rose roughly 7 % after a January hint that they were “examining all options.”
