Become a MacRumors Supporter for $25/year with no ads, private forums, and more!

MacRumors

macrumors bot
Original poster
Apr 12, 2001
54,690
16,870


After five grueling years of financial losses and uncertainty about the future of its mobile handsets, LG Electronics today announced its intention to shut down its smartphone division.

lg-wing.jpeg

In a press release, LG says the decision to shut down its smartphone business will allow it to focus on other sectors such as artificial intelligence, home computing, and business-to-business solutions.
LG's strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.
Despite its hardships, LG had multiple hits in the "incredibly competitive" market, including teasing the world's first rollable smartphone. For its devices still in the hands of customers around the world, LG says it will continue to provide user support and will sell its phones until the current stock runs out.
Current LG phone inventory will continue to be available for sale. LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.
In March, LG was considering exiting the smartphone industry, although, at the time, rumors suggested the company was aiming to sell the business instead of a complete shutdown. However, the lack of significant growth and mainstream adoption in recent years meant it was unable to find a potential buyer.

Despite the shutdown, LG says it will retain some of the core advancements that its smartphone business has made over the years, including research and development in 6G and connectivity to be applied to existing and future products.
Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.
While the shutdown was announced today, LG says it expects its mobile division to completely cease by July 31.

Article Link: LG to Shut Down Smartphone Business
 

rp2011

macrumors 68000
Oct 12, 2010
1,997
2,140
Too many Android device makers in the market to be sustainable. It’s the lasting effect of commodity handsets that first took out Blackberry, Palm and Nokia. Now it’s cannibalism.
Expect to see the number of Android handset makers whittle down to just one or two Chinese companies.
 
Last edited:

Relentless Power

macrumors Nehalem
Jul 12, 2016
35,859
39,210
LG didn’t make a ‘bad phone’, that wasn’t there pitfall. They failed at marketing, and became lesser over the years when the iPhone became very dominant around the 2013 timeframe. It just goes to show you how stiff this competition is, but even Samsung is on the decline with smart phone sales, and really Apple has dominated the market Year-after-year.
 
Last edited:

femike

macrumors 6502a
Oct 15, 2011
704
1,253
I had one LG phone and that was in the pre-smartphone era, a flip phone, and the build quality, build tolerances and its design were perfect. I remember commenting on it at the time.
The only smartphone I had made by LG was the Nexus 4, and again it was made very well with good tech specs, and is still functional today.
 
Last edited:

ian87w

macrumors 601
Feb 22, 2020
4,473
6,424
Indonesia
Too many Android device makers in the market to be sustainable. It’s the lasting effect of commodity handsets that first took out Blackberry, Palm and Nokia. Now it’s cannibalism.
Expect to see the number of Android handset makers whittle down to just one or two Chinese companies.
Considering the large pie, there are still room for many players. The problem is the rise of Chinese OEMs who are undercutting these traditional players. Eg. Xiaomi only put 5% margin in their prices. With this, it's much harder to compete unless you've been building a strong brand from the get go (eg. Samsung). Old players like Sony probably are also hindered with internal management style (eg. Just look at how long the mobile and Alpha division bickered against each other).

I have actually spoken with people who had worked with LG mobile here. Most of them pretty much universally said LG has great devices, but they just piss poor at marketing compared to their rival Samsung.
 

Quu

macrumors 68040
Apr 2, 2007
3,129
5,744
Sad thing is even if you have a great phone it doesn't guarantee success. The marketing budgets required to lift these things into the publics consciousness are ginormous. It seems like eventually it'll just be Apple, Samsung, Xiami, Huawei and Oppo in the space with 99.9% market share shared amongst them.
 

pratikindia

macrumors 6502
Apr 7, 2014
462
493
I had an LG phone during Android 2 and it was great. Build quality, reception, audio, everything was great. Served me many years without any issues and with updates. Sadly, I think LG could not continue with Samsung‘s strategy, otherwise I think they could have been successful.
 

pratikindia

macrumors 6502
Apr 7, 2014
462
493
Considering the large pie, there are still room for many players. The problem is the rise of Chinese OEMs who are undercutting these traditional players. Eg. Xiaomi only put 5% margin in their prices. With this, it's much harder to compete unless you've been building a strong brand from the get go (eg. Samsung). Old players like Sony probably are also hindered with internal management style (eg. Just look at how long the mobile and Alpha division bickered against each other).

I have actually spoken with people who had worked with LG mobile here. Most of them pretty much universally said LG has great devices, but they just piss poor at marketing compared to their rival Samsung.
Chinese brands had a very good strategy. Just check their prices compared to 2 years ago. First sell devices with little profit and when people buy them more, raise the price gradually. That’s the success story for them.
 

kerr

macrumors 6502
Jul 12, 2010
423
678
Australia
Too many Android device makers in the market to be sustainable. It’s the lasting effect of commodity handsets that first took out Blackberry, Palm and Nokia. Now it’s cannibalism.
Expect to see the number of Android handset makers whittle down to just one or two Chinese companies.
I really wish there was a viable third mobile operating system. I was a massive Palm fanboy in the late 90s into the 2000s, but like so many others, they blew it.
 

Abazigal

Contributor
Jul 18, 2011
15,306
14,635
Singapore
Sad thing is even if you have a great phone it doesn't guarantee success. The marketing budgets required to lift these things into the publics consciousness are ginormous. It seems like eventually it'll just be Apple, Samsung, Xiami, Huawei and Oppo in the space with 99.9% market share shared amongst them.
Apple has changed the rules of the game. It’s not enough to just have a good phone. You need the whole ecosystem to provide a cohesive experience for the end user.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.