LG is considering leaving the smartphone business

midian182

Posts: 6,798   +61
Staff member
TL;DR: LG might be an industry leader when it comes to the likes of televisions, monitors, and home appliances, but it's a small player in the world of smartphones, struggling to catch up with its rivals. Now, the company is reportedly considering hanging up on its mobile business for good.

LG shipped 6.5 million smartphones in Q3 2020, down 7.2 million compared to the same quarter a year earlier. With the group losing about 5 trillion won ($4.5 billion) across the last five years and holding just a two percent global market share, CEO Kwon Bong-seok has advised staff in an internal memo that big changes are coming, according to The Korean Herald.

"Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice," an LG official told the publication. "The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business."

LG has confirmed the authenticity of the memo to The Verge. "LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021," said an LG spokesperson. "As of today, nothing has been finalized."

LG G8X ThinQ

The news comes after Korean site The Elec earlier this month claimed LG was set to announce its departure from the smartphone market. The company's global communicator for consumer tech, Ken Hong, called the report "completely false and without merit. I won't even justify that rumor with a statement".

From the LG G5 and its modular slot, to the dual-screen LG G8X ThinQ and swiveling LG Wing, the company has never been afraid to innovate in an industry where the latest flagships tend to offer few changes over their predecessors. But that innovation hasn't translated into a healthy bottom line: LG's smartphone business has posted operating losses for the last 23 consecutive quarters.

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Theinsanegamer

Posts: 2,452   +3,610
Aside from their attrocious build quality that alienated many customers, LG also completely missed the boat on affordable midrange phones, the bigger battery trend, eve. Now their current flagship looks interesting, but isn’t available unlocked.

They’ve been completely out of tune with the market for years now. Surprised it took them this long to figure out they suck at this.
 

QuantumPhysics

Posts: 4,912   +5,456
The competition has Apple and Samsung sitting on top and everything else below them.

But the real divergence is the Chinese brands which are gradually splitting away from iOS and Google in order to avoid (and ignore) their US based scrutiny.

The Chinese brands number so many, that all of Asia and Southeast Asia will be consumed with them.

As I witness in the Philippines and Bali, these phones are so incredibly cheap that virtually any and everyone can have a smartphone - even those in dire poverty.



 

QuantumPhysics

Posts: 4,912   +5,456
Aside from their attrocious build quality that alienated many customers, LG also completely missed the boat on affordable midrange phones, the bigger battery trend, eve. Now their current flagship looks interesting, but isn’t available unlocked.

They’ve been completely out of tune with the market for years now. Surprised it took them this long to figure out they suck at this.

My mom bought an LG Stylo years ago and then I took her for her birthday to buy an LG Stylo 2. She never really used the stylus and like all Android users, she eventually complained about low-memory issues and battery wear. Then I gave my my iPhone XS Max 512GB along with my Applewatch 2 and she was completely satisfied. Constantly remarking how much more she enjoys the apple ecosystem.

I sound like an Apple fanboy, but let me say this:

I REALLY LIKED the Stylos features such as the touch ID on back for the index finger. The Stylo 6 looks like it might have actually been a good phone.

But When you have Samsung simultaneously undercutting you with higher quality phones like the J6, J7 and J8, you really can't beat them.
 

0dium

Posts: 208   +260
My mom bought an LG Stylo years ago and then I took her for her birthday to buy an LG Stylo 2. She never really used the stylus and like all Android users, she eventually complained about low-memory issues and battery wear. Then I gave my my iPhone XS Max 512GB along with my Applewatch 2 and she was completely satisfied. Constantly remarking how much more she enjoys the apple ecosystem.

I sound like an Apple fanboy, but let me say this:

I REALLY LIKED the Stylos features such as the touch ID on back for the index finger. The Stylo 6 looks like it might have actually been a good phone.

But When you have Samsung simultaneously undercutting you with higher quality phones like the J6, J7 and J8, you really can't beat them.
Sounds like a fake review from "satisfied customer" from those cheap s**t ads on TV.
 
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MasterMace

Posts: 174   +141
They refuse to fix their GPS issues, took away the removable battery, they just downgraded the 1440p screen to 1080p when theyve been on 1440 since the G3, they wont cut down on the bloated software, and they keep putting in subpar processors to deal with their refusal to upgrade the battery. They released the LG Velvet, which forfeited the flagship fight, except was too expensive to compete with the midrange phones.

The people who have insisted on these features and designs need to be fired, and needed to years ago. LG still has the ability to fix their mobile division.
 

p51d007

Posts: 2,734   +2,061
When you walk into a store, be it retail or a "carrier" store, what do you see?
Apple & Samsung. Sometimes you really have to search, to find an alternative.
And, what do the employees push? Apple & Samsung. So, it makes sense that
most lower tier companies would perhaps get out of the phone business.
 

Adi6293

Posts: 803   +1,080
My mom bought an LG Stylo years ago and then I took her for her birthday to buy an LG Stylo 2. She never really used the stylus and like all Android users, she eventually complained about low-memory issues and battery wear. Then I gave my my iPhone XS Max 512GB along with my Applewatch 2 and she was completely satisfied. Constantly remarking how much more she enjoys the apple ecosystem.

I sound like an Apple fanboy, but let me say this:

I REALLY LIKED the Stylos features such as the touch ID on back for the index finger. The Stylo 6 looks like it might have actually been a good phone.

But When you have Samsung simultaneously undercutting you with higher quality phones like the J6, J7 and J8, you really can't beat them.

She complained about a battery wear on an Android phone but not on a second had iPhone? Plus most Android phones have memory cards why not just get her one of those? I smell BS in that story all the way from Scotland.........
 

NeoMorpheus

Posts: 524   +1,005
Maybe Google should buy that division and hopefully do something more to increase the market availability and better devices for their Pixel line.
 

nismo91

Posts: 1,115   +150
She complained about a battery wear on an Android phone but not on a second had iPhone? Plus most Android phones have memory cards why not just get her one of those? I smell BS in that story all the way from Scotland.........

I mean he bought a $149 android phone in 2016 with only 2GB of RAM, Snapdragon 410 CPU and 720p screen - and later said that a $1349 iphone released in 2018 is way better. he's not technically wrong you know..... in loose terms it's like saying a 2018 s-class is more satisfying than 2016 nissan sentra.
 

Adi6293

Posts: 803   +1,080
I mean he bought a $149 android phone in 2016 with only 2GB of RAM, Snapdragon 410 CPU and 720p screen - and later said that a $1349 iphone released in 2018 is way better. he's not technically wrong you know..... in loose terms it's like saying a 2018 s-class is more satisfying than 2016 nissan sentra.

You know I was going to price check that Android phone but could not be bothered but yeah his logic is level 100 haha just another way to remind us what a **** he is :joy:
 

Burty117

Posts: 4,086   +2,080
Sounds like a fake review from "satisfied customer" from those cheap s**t ads on TV.
She complained about a battery wear on an Android phone but not on a second had iPhone? Plus most Android phones have memory cards why not just get her one of those? I smell BS in that story all the way from Scotland.........
I mean he bought a $149 android phone in 2016 with only 2GB of RAM, Snapdragon 410 CPU and 720p screen - and later said that a $1349 iphone released in 2018 is way better. he's not technically wrong you know..... in loose terms it's like saying a 2018 s-class is more satisfying than 2016 nissan sentra.
Only QP can compare a $150 phone to a $1349 phone and not see any issues with the comparison. At this point I just find him funny. Has anyone here watched the Inbetweeners? If so, QP is basically Jay.
 

QuantumPhysics

Posts: 4,912   +5,456
She complained about a battery wear on an Android phone but not on a second had iPhone? Plus most Android phones have memory cards why not just get her one of those? I smell BS in that story all the way from Scotland.........


Regardless what you smell, it doesn't change facts.
 

Toju Mikie

Posts: 188   +170
I was really thinking of buying the LG v60, but unfortunately, there was no factory unlocked version of the phone. I'm still interested in LG phones, so I would be sad to see them go, but they have to do what they have to do.

I was a big fan of the LG v20, so I was hoping to see a phone like that one again, but haven't seen one that is factory unlocked and gets timely updates as well.