LG is considering leaving the smartphone business

[midian182]

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.

LG Wing

"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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https://www.techspot.com/news/88347-lg-considering-leaving-smartphone-business.html

 

[Theinsanegamer]

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]

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]

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.

 

[Xex360]

It's very sad, LG often has better phones than Samsung Apple or Huawei, but no one talks about them.

 

[QuantumPhysics]

It's very sad, LG often has better phones than Samsung Apple or Huawei, but no one talks about them.

The Free Market is always right.

If you make the best product ever - but don't advertise it properly - then you're no better than a Flamingo with great genes and no tail feathers.

 

[0dium]

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.

 

[zamroni111]

Lg wastes money on making too-weird phones

 

[whateversa]

I still have my LG G3 Beats... and it still works so many years later. The headphones that came with it had very good sound quality as well compared to most..

 

[DrSuess]

It's very sad, LG often has better phones than Samsung Apple or Huawei, but no one talks about them.

You can blame that on the LG marketing team they were not as good as Samsung's or Apple's marketing teams.

 

[Uncle Al]

"It has made a loss for 23 consecutive quarters"

Frankly, I am surprised that any board of directors or CEO would have stayed the course for so long .... it is very doubtful you would EVER see any American company do that .....

 

[nismo91]

Well well well. last month you told us that LG has posted straight losses for 22 consecutive quarters. I honestly thought they'd continue doing so until the 40th quarter - just being alive to make sure Samsung is not the only giant in town. so I guess if they really quit there must be something great about number 23.

https://www.techspot.com/news/87879-lg-outsources-loss-making-mobile-phone-business-focus.html

 

[MasterMace]

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.

 

[Squid Surprise]

23 quarters sounds long..... but it’s less than 6 years.... not sure when we started measuring in quarters... I thought only pregnancies used that unit...

 

[p51d007]

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]

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.........

 

[punctualturn]

Maybe Google should buy that division and hopefully do something more to increase the market availability and better devices for their Pixel line.

 

[nismo91]

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.

 

[MasterMace]

23 quarters sounds long..... but it’s less than 6 years.... not sure when we started measuring in quarters... I thought only pregnancies used that unit...

Pregnancies use trimesters, not quarters.

 

[Adi6293]

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

 

[Burty117]

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]

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]

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.

 

[Adi6293]

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

Facts are what's facts are and all of us here know what they are

 

[Squid Surprise]

Pregnancies use trimesters, not quarters.

I see you’re immune to humour.... for the record, how long is a trimester? How long is a quarter?

Hope you see where that’s going...