LG to announce departure from the smartphone market next week

LG to announce departure from the smartphone market next week
LG to announce departure from the smartphone market next week
It is no longer today that we hear rumors that LG Electronics Inc., or simply LG, is planning to exit the smartphone market. This subject was already speculated a few years ago, but denied by the manufacturer itself over time. More recently, rumors have returned to the network after some reports point to a negative result for the manufacturer in the smartphone department.

Sought by Oficina da Net, on this occasion, LG said that this “information was unfounded and based on old rumors”, denying any possibility that the company would be terminating its activities in the development of smartphones. But it seems that this is an inevitable destination.

An informant known as Tron, who has even released a number of reliable information about LG in the past, strongly says that the decision could be announced officially as early as next Monday, April 5.

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An inevitable destination

In a report released by LG itself in December 2020, the manufacturer recorded its 22nd consecutive quarter of loss. Later, an adviser to the company told the Korea Herald that “competition in the global market is getting tougher, so it is time for LG to make a cold judgment”, thus pointing out that the exit of the smartphone division would be the best choice to be taken now.

“The company is considering all possible measures, including selling, withdrawing or reducing the size of the smartphone business.”

For example, Counterpoint reports reveal that in the last quarter of 2020 LG sold a total of 6.5 million smartphones worldwide, compared to 7.2 million in the same period in 2019. From a more standpoint broad, the graphics produced by StatCounter show that the manufacturer’s market share fell from 2% to 1.7% between October and December 2020.

Considering this possibility, on another occasion the company has already stated that in this situation, all 4,000 employees that belong to the smartphone division would be relocated to other sectors of the company. LG started manufacturing mobile phones in the late 1990s and in 2010 launched its first smartphone models.

Tron adds that although LG has signaled that it would continue to develop support and updates for its already launched models even if it left the market, Tron believes that this situation is “unlikely”, and so all recently launched devices, such as the LG Wing, would become obsolete more quickly.

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