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| Image Source - The Guardian |
competitive market so, they decided to pull out of the smartphone market.
LG spokesperson said on Monday that it will shut down its loss-making mobile
division, this makes them the first major smartphone brand to completely withdraw from the market.
After pulling out of the smartphone market will leave its 10 percent market share in North America up for grab, where it is the No. 3 brands only behind Apple and
Samsung. However, it also has a sizeable share in Latin America, where it is No. 5
brand. Currently, it has a global share of only about 2 percent.
Lg's mobile division has been facing nearly six years of losses since Q2 of 2015,
aggregating to $ 4.5 billion, and around 33,010 crores in Indian rupee. As per the
XDA report.
According to XDA developer report google, Facebook, Volkswagen and Vietnam's
Bin group shows interest to buy their mobile division but the talks did not turn out Fruitful.
Leaving the highly competitive market would help LG to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business to business solutions, as well as platform and services, LG said in the public statement.
LG's smartphone division is the smallest of its five division, accounting for about 7 percent of revenue. The shuttering of its mobile business is expected to be completed by July 31st this year.
However, LG will continue to leverage its expertise in the field of communication
networks and develop mobility-related technologies such as 6G and will focus on
further strengthening its competitiveness in other fields. It has also been Confirmed that Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.
What about users?
LG may have announced its exit but its smartphones that are in stock with the
vendors can still be purchased. The company also committed that they will provide three years of OS and security update to selected phones which will vary by region, which means the smartphone may get the software update in the USA but not in India.
Customer Service or after-sale services will be provided with utmost effort LG says in an official statement that LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business and produce service parts to avoid customer inconvenience. So, you can still purchase LG phone accessories and repair parts.
LG says they will continue to provide mobile application update although some
applications and services will be discontinued. Till now Qlens and PC Suite / LG
Mirror Drive (PC Tool for products released before 2019) will be discontinued.
LG says user’s personal data collected during the retention period according to the privacy policies of each applicable service and will be safely destroyed at the end of the retention period.
Employee layoffs?
LG did not say anything clear about how much employment effect would result from this decision, they just mentioned Details related to employment will be determined at the local level. In the official statement.
However, LG will continue to leverage its expertise in the field of communication
networks and develop mobility-related technologies such as 6G and will focus on
further strengthening its competitiveness in other fields. It has also been Confirmed that Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.
What about users?
LG may have announced its exit but its smartphones that are in stock with the
vendors can still be purchased. The company also committed that they will provide three years of OS and security update to selected phones which will vary by region, which means the smartphone may get the software update in the USA but not in India.
Customer Service or after-sale services will be provided with utmost effort LG says in an official statement that LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business and produce service parts to avoid customer inconvenience. So, you can still purchase LG phone accessories and repair parts.
LG says they will continue to provide mobile application update although some
applications and services will be discontinued. Till now Qlens and PC Suite / LG
Mirror Drive (PC Tool for products released before 2019) will be discontinued.
LG says user’s personal data collected during the retention period according to the privacy policies of each applicable service and will be safely destroyed at the end of the retention period.
Employee layoffs?
LG did not say anything clear about how much employment effect would result from this decision, they just mentioned Details related to employment will be determined at the local level. In the official statement.
But as per the report, LG is planning to no 60 percent of its employees to other business units within the company or to other LG affiliates. The rest 40 percent of staff's destiny is still a mystery, but according to the report of company officials whether any change in the business operation of the smartphone will happen or not but employment will be maintained.
Written By - Sukhvinder Gaur
Edited By - Vanshu Verma
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