LG was previously rumored to withdraw from the smartphone market due to years of losses.
Today, LG responded that it does not rule out any possibility and is discussing all feasible plans, and does not rule out the possibility of selling, reducing the scale of the business or maintaining the status quo.
LG’s smartphone business has suffered losses for 23 consecutive quarters since the second quarter of 2015. As of the fourth quarter of last year, the department’s accumulated losses reached 5 trillion won (approximately $450 million).
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According to industry insiders, ‘the cold winter’ of the smartphone market has arrived, and the quarterly shipments of the global smartphone market have been declining year after year. The Matthew effect has intensified. The strong companies will become stronger and for the weak ones, it will be more difficult to survive.
At present, LG has withdrawn from the Chinese smartphone market and has lost the opportunity to rise.
In overseas markets, LG smartphones have not performed as well as competing products such as Samsung and Apple in the North American market. Chinese smartphone brands such as Xiaomi, OPPO, and VIVO are also actively developing overseas markets.
LG smartphones are facing enemies in many ways in overseas markets. Many competitors are squeezing the living space of LG smartphones. If changes are not made in time, LG is likely to face the same ending as the Chinese market in the future.
Alas, not all so-called traditional smartphone makers will remain in the market. The competition is becoming more and fiercer. So those who have not made many improvements in the business, will appear out of the game.