LG is one of the top smartphones manufacturers in the smartphone industry and they make one of the best products out there. The company has made a lot of unique phones and phones with features which no other company ever had in the past.
But even after the great performance of the brand in the market, the company is struggling in the market as the competition is cut through and company’s phones are not selling in that huge quantity. Though the company has really cool phones like LG Wing 5G and there is also another phone coming soon in the market named LG Rollable, we really don’t know why the company has made such a tough decision to leave the market.
In today’s era, it is not just the smartphone market, but every other industry is facing a lot of problems in getting market share as there are so many competitors and they are providing products at very cheap price, sometimes, they even sell it bearing losses.
There was a note sent to the employees of the company which was sent by the CEO of the company, Kwon Bong Seok, where he properly mentioned the decision about getting out of the smartphone business. Though he also said that they were going to take all the possible measures to keep the brand alive by implementing solutions into sales and might even downsizing.
There was a rumour a few months ago about the company getting out of the smartphone industry. but when it was asked, the global head of corporate communications of the company said that those were just rumours and completely false. We don’t really know what happened in these few months which made the company change their mind.
A LITTLE MARKET SHARE
If we talk about numbers, the decision of the company is quite practical because the company really doesn’t have a great market share. It is standing with just 1.7% of market share in the last month of 2020. The numbers are very less.
Though the smartphone industry is doing very well, some of the companies are there who are really struggling to grab market share. Talking about the market, there are very few companies who are literally doing good with a great market share. Apple and Samsung are the top two brands with the greatest market share.
There are other brands like OnePlus who are also making very good phones and selling them at really aggressive prices. The problem that LG is facing is because they are not even near to the prices where the OnePlus is selling its phones. If LG really wants to stay in the market and increase the share, then they have to reduce the prices of the product.
Do you think that it is a good decision by the company to get out of the smartphone market?