The South Korean electronic brand maker LG that stands for Life Good said it’s going to get out of the loss-making mobiles phones business to concentrate on other services and products.
- Life Good’s board went on to approve the variation in strategy and the firm goes on to expect to completely exit the business of mobile phones by late July, disclosed in the statement.
- Life Good was once upon a time the 3rd-largest maker of mobile phone, however, has lost the share in the market to some of the other Chinese competitors.
This electronic maker- LG from South Korea said on Monday it’s planning to get away from its phone business due to making a heavy loss and instead focus on the other electric vehicle parts, artificial intelligence, robotics, and several other services and products. Its determination to go on and pull out will bequeath its 10 percent share in Northern America, where it’s ranked as #3 brand, to be bolted up via smartphone titans Samsung Electronics & Apple Inc.
The department has recorded nearly 6 years of massive losses totaling about 4.5 billion dollars, and then dropping out of a fiercely competitive area would allow Life Good to concentrate on growth regions such as connected devices, electric vehicle segments, and smart homes, L.G. said in one of the statement.
In healthier times, Life Good was fresh to the market with several mobile phone innovations that include ultra-wide-angle cameras and also in 2013 for once, the world’s 3rd-largest manufacturer in the field of smartphone behind Apple and Samsung.
However, not the same is the case in today’s time as Life’s Good board confirmed the change in the strategy and the firm expects to completely exit the business of mobile phone via the end of the coming July as mentioned already in this guide.
Besides staying as the 3rd-largest maker of mobile phones, Life’s Good has lost the market share to none other than the Chinese and several other existing competitors. It was somehow still #3 when you talk about North America, where they hold 13 percent market share right behind Samsung’s 30% and Apple’s 39% as of the 3rd-quarter of the year 2020, as per the Counterpoint Tech Market Research.
Fans of LG Electronics bemoan the end of an era as the company exits the business of smartphone
The smartphone users of LG in the United States and South Korea posted some of the nostalgic tributes and praises on their social media page after the company announced its exit, citing the prolonged slump in sales. LG, however, still holds roughly about a 10 percent share of the United States smartphone market.
LG previously said it’s assessing its plans and strategy as they reported that their sales rose by 5 percent from the year-earlier in the very last quarter of the year 2020, however, profitability declined to do the sluggish sales of the premium products and services.
Details concerning jobs would be determined “at a local level,” the firm said. Notably, the shares of the company fell by 2.5 percent on Monday.