The end after thirty years, LG legend goes out of business

South Korea's LG Electronics has completely shut down its smartphone business after 30 years in business, the Chosun Daily reported.

According to that publication, LG Electronics has stopped all support, including official after-sales service, as of June 30. The company has also stopped supplying spare parts. This means that LG smartphone users will no longer be able to repair their devices or get technical support from official service centers.

In addition, the company has discontinued support for mobile software updates (FOTA) and the Android operating system, as well as several key apps such as LG Health and LG Mobile Switch.

Currently, LG Electronics' share of the smartphone market in South Korea is only 1 %. The company has officially announced its exit from the mobile phone market in 2021.

LG's smartphone businessLG Electronics, one of South Korea's leading technology companies, entered the mobile phone market in the 1990s, when mobile phones were becoming a common part of everyday life. During the early years, LG focused on producing basic mobile phones that competed with brands such as Nokia and Motorola. In 2002, LG launched its first colour display on a mobile phone, a significant step at the time.

With the advent of the smartphone era at the end of the first decade of the 21st century, LG has struggled to keep up with growing competition, especially giants like Apple and Samsung. The company sought to differentiate itself with its innovative designs and technologies. For example, in 2013, LG launched the G2, which featured a unique button placement on the back of the device, which was considered a revolutionary approach to ergonomics at the time.

Another notable innovation was the 2013 LG G Flex, the first smartphone with a flexible display that demonstrated the company's technological ambitions.

LG has also experimented with modular phones, such as the LG G5 in 2016, which allowed for various add-ons such as upgraded cameras or audio modules. However, the concept did not gain widespread support among consumers and LG struggled to stay competitive.

Despite these innovations, the company has faced increasing pressure from Samsung, Apple, and newcomer Chinese manufacturers such as Xiaomi and Huawei, who have offered more affordable alternatives with similar features.

LG's decision to exit the smartphone market in 2021 came after years of financial losses in its mobile devices division. According to reports at the time, LG's mobile phone division posted a loss of over $4.5 billion over the previous five years. Despite revitalization attempts, such as the aforementioned LG Wing model with a rotating display in 2020, the company failed to regain its lost market share.

The LG Wing was another example of bold design, but its high price and limited practicality did not appeal to enough customers.

The company has decided to focus its resources on other business areas, such as home appliances, TVs and electric vehicle technology, where LG has a stronger position and better growth prospects. This strategic shift has enabled LG to better leverage its technological know-how and compete in areas where it can achieve profitability.

gnews.cz - GH