LG Electronics had just announced that it will be exiting the smartphone business. The company had various reasons to quit the industry, and it seems that its rival Samsung and Oppo will be fighting to grab its market share.
According to a MoneyUDN report, the South Korean tech giant is shutting its loss making unit as it can’t compete with the likes of Apple or Samsung in the high end segments while Chinese brands dominate the mid to low end segments. Thus, it is expected to lose its market share once it exits the industry to its fellow South Korean rival and China’s Oppo. This also marks the departure of a major smartphone brand from the industry.
Furthermore, the global smartphone market can also be divided into two platforms, namely, Android and iOS. Within both platforms, Samsung and Apple are the leaders, meanwhile, even Huawei after being affected by the US trade restrictions and having its market share decline sharply is ahead of LG. Chinese vendors like Oppo and Xiaomi also offer better value to the consumers, and have hence, surpassed the South Korean firm as well.
LG’s key markets included regions like Europe, South Korea, and certain Southeast Asian markets. These are now expected to be replaced with Samsung in the high end market and by Chinese brand Oppo for the mid to low end segments. LG was once one of the top three smartphone brands, although, it has been seeing losses since the second quarter of 2015. It had been rumored to shut its mobile division for a while so the announcement is not a surprise.
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