ClickCease
TECH

LG Joins BlackBerry And Nokia Calls It Quit On Smartphones

LG is the latest legacy phone maker to capitulate amid stiff competition in the mobile phone sector. The electronics giant has confirmed it will exit the smartphone business scene in July and shift its focus to smart home products, an area it sees tremendous opportunities for growth.

LG Transition

In addition, the company intends to become a key player in electric vehicle components, an area that is still in the early stages of development. It also plans to ramp up investments in robotics, artificial intelligence, and other connected devices.

The South Korean company’s decision to wind up the phone business does not come as a surprise. Stiff competition in the sector has resulted in a significant reduction in margins. Small companies have found the going tough with consumers only inclined at spending on the likes of Apple and Samsung products.

Customers holding on to devices much longer have taken a significant toll on the business. Consumers are also turning on to less expensive models making it difficult for companies to make big bucks from high-end models.

Smartphone Business Competition

LG joins a string of legacy phone makers that have significantly trimmed their operations on this front. BlackBerry Ltd (NYSE: BB), which at one point was the poster child of the phone business, has already exited the business opting to focus on software and cybersecurity solutions. Nokia Oyj (NYSE: NOK) also no longer exists in its original form that was driven by phone sales.

LG has found the going tough after its botched transition into the smartphone business from the QWERTY phone world. The lack of the financial muscle to take on Samsung and Apple has also made it impossible to compete in the high-end smartphone marketplace.

Over the past decade, LG has found it difficult to get consumer attention. The company has tried to experiment with innovative designs over the past few years but still struggled to get the much-needed attention. When the first iPhone went on sale in 2007, LG was one of the five biggest phone vendors. As of 2020, the company ranked nowhere close to the biggest smartphone vendors.

By reading our website you agree to the terms of our disclaimer, which are subject to change at any time. Owners and affiliates are not registered or licensed in any jurisdiction whatsoever to provide financial advice or anything of an advisory nature. Always do your own research and/or consult with an investment professional before investing. Low priced stocks are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold us, our editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters, website, twitter, Facebook or chat. We do not advise any reader to take any specific action. Our releases are for informational and educational purposes only. Never invest purely based on our articles. Gains mentioned on our website, twitter, Facebook, and on our website may be based on EOD or intraday data. We may be compensated for the production, release, and awareness of this article. We will disclose any and all compensation on the article page. This publication and its owner never hold positions in the securities mentioned in our articles. Our information may contain Forward-Looking Statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site. The information in our disclaimers is subject to change at any time without notice. We are not held liable or responsible for the information in press releases issued by the companies discussed in these write-ups. Please do your own due diligence