Table of Contents 64q43
After 6 years of constant losses in the market, today LG announces exit from the smartphone market. According to the company, the decision will allow its resources to be focused on areas that present growth and financial return, such as electric vehicle components, smart homes and artificial intelligences. 3y82a
The decision of LG exiting the smartphone market had been speculated for months, due to the company's various losses in the market in recent years. Even when it focused on cheaper and more affordable cell phones, competition with brands like realme e Xiaomi in the category ended up hindering the popularization of the Korean brand's devices in the market.
According to the official announcement of LG, the latest cell phones launched will continue to be sold, and will still be ed by the company for a period that will vary between regions of the world. As for the cut of employees, nothing was said other than that they will be local decisions of each company operation. The brand expects to have completed closing the division by July of this year.
In March, information that the LG had tried to sell its cell phone division but was unable to have been publicized by technology sites, and that the possible termination of activities and development of new products could occur. Also in March, the Korean information portal East Asia revealed that the company had stopped development of its foldable cellphones, even the ones that had been shown in the CES 2021.
According to information published by the portal Nikkei Asia, it is not just because of the few sales that the company decided to leave the market. Such as LG does not have its own production of chips and processors, the global shortage of components meant that it could not obtain the components needed to produce devices in the future, which helped in the decision to leave the market.
LG announces exit from the smartphone market with a great legacy 276s3s
During its stay on the market, the LG launched several unusual devices compared to rivals, trying to capture a share of the market. Devices like the Lg wing, where the main display could be flipped to show a smaller secondary screen, and the company's various dual-screen phones launched, but none managed to capture the market. According to sales data, LG until 2020 was responsible for just over 2% of the world cell phone market.
In Brazil, some of the latest cell phones launched by the brand were the LG K52, K62 and K62+, focused on the entry market. With its exit from the smartphone market, LG s other companies that have abandoned or sold their cellphone divisions, such as Nokia e Blackberry.
Impact for LG employees in Brazil 591z3w
A LG has a factory in Brazil, located in Taubaté, inside São Paulo, focused on the production of smartphones and monitors, and another factory located in Manaus, Amazon, which produces air conditioners, refrigerators and other home appliances. the factory Taubaté with a thousand employees, and about 400 are focused on the production of cell phones. The end of the cell phone division will not affect the monitor part of this factory, nor the Manaus.
Since March 26, workers in the cell phone division of the Taubaté are on strike, due to the uncertainties generated by speculation about what would happen to the cell phone division of LG. Although the announcement of the end of the same was made today, until the closing of this article, no position on the fate of the workers of this factory had been released.
Brand positioning 733z4e
LG Brasil issued an official statement about the end of the cell phone division:
“Since the second half of 2015, our global mobile phone business has been experiencing an operating loss for 23 consecutive quarters, resulting in a cumulative total of approximately $4,1 billion (US) by the end of 2020.
After evaluating all the possibilities for the future of our cellular business, Headquarter Global decided to close this division in order to strengthen its future competitiveness through selection and strategic focus.
As a company that deeply values the contribution of each LG employee, customer and partner, we will communicate openly and transparently during this process, pursuing a fair and pragmatic approach while meeting legal obligations.
It is with sadness that we share this news with our customers and partners who over all these years have shown us their trust and .
LG Electronics do Brasil thanks you and will focus strongly on its business in order to continue to provide innovative products and services that will make life better.”
LG Electronics do Brasil
