Innovation and startup: LG bans smartphone marketing!
Announced in mid-fall 2016, South Korean consumer electronics giant LG has finally hung its apron by announcing that it will end marketing smartphones under its own brand. Indeed, LG is bowing down to stiff competition from Chinese brands, its compatriot Samsung and American giant Apple. LG smartphones are now history.
a retreat that makes a lot of noise
It was through an official press release and on its various media platforms that LG announced the news of its withdrawal from the smartphone market. A rumor already last week sparked a decision that seems completely logical.
While the brand assures that this decision has been validated by the board of directors, LG insists that it is a “strategic decision” Recognizing that the smartphone market has become highly competitive.
LG’s withdrawal from the smartphone market is no surprise. The firm has suffered huge losses in this market for a few years, and it may be that the losses have reached a trifle of € 3.82 billion over the past 6 years.
So it is a mature and honest decision, because the truth is that LG smartphones are no one’s dream anymore.
Struggling brand, Chinese top
Like the Japanese Sony or the American Motorola, LG has seen stiff competition from Chinese brands in recent years. Which has Huawei on its head, which literally sucked up the customers of its market rivals.
And what’s the future for customers?
, Going forward, LG will continue to leverage its expertise in mobile telephony and develop mobility-related technologies, such as 6G, to enhance competitiveness in other business areas. Core technologies developed over two decades of LG’s mobile business will also be retained and applied to existing and future products.”, the brand ends.