case study- why LG stopped making smart phones?

 A report by Korea Herald said that LG CEO Kwon Bong-Seok has informed all the employees via email about its intentions of shutting down the smartphone segment owing to huge losses. The company incurred losses mounting about $4.5 billion (roughly Rs. 32856 crores) in the last five years in the smartphone market making LG take a ‘cold judgement’ said an official.


LG faces fierce competition in its home from Samsung, also a Korean electronics brand in the smartphone business along with several newcomers from China be it Xiaomi, OnePlus, Oppo or Vivo. As 60 per cent of the job holders that have been moved to other segments, the remaining 40 per cent can be retained if the company wants to not completely exit but focus on a few flagship models only. Last year, LG launched two new handsets, the dual-screen Velvet and flip LG Wing handsets with the aim to stand out from the rest in the market.

"It's good that LG decides to exit this business sooner, at least from India's perspective," he added.

In the light of immense competition from Chinese mobile manufacturers, LG has not been able to reclaim its lost market share in India.

LG certainly is bringing more innovation to its smart TV segment.

The company announced the first rollable TV last year and during the CES 2021, it showcased its transparent OLED panel.

"LG has always launched competent smartphones and after Samsung, it has been the only smartphone player that has worked on innovation in shapes and technology, like the scratch-free G6 or the foldable G8xThinQ," said Ramesh Somani, Chief Editor and Publisher, Exhibit Magazine and BBC TopGear India.

"LG never researched on their competitors it was biggest drawback, prises  LG used to offer was much high compare to others smartphones company "

"Their exit will be a big loss to the innovative spirit of the smartphone industry and at the same time, their shrinking market share will not make for a business case," he added.

To boost its premium smartphone sales, LG last year launched the Explorer Project.

Under the project, the company released the Wing, a dual-screen smartphone with a rotating form factor.

For this year, LG was scheduled to launch a smartphone with a rollable OLED display.

Comments

Post a Comment

Popular posts from this blog

HOW TO TRICK DOPAMINE IN YOUR DAILY LIFE TO GET SUCCESS

Image
  D opamine is usually seen as the main chemical of pleasure lets see some of the facts Dopamine helps you feel alert! A study showed that those are sleep deprived have less dopamine binding to their receptors in the brain. Dopamine affects your motor control! Too much dopamine can cause body tics and other small, uncontrollable movements. If you don’t have enough dopamine, movements can become uncoordinated. Foods can actually give you dopamine boosts! Foods (like cheese, nuts, and chicken) that have L-Tyrosine and L-Phenylalanine increase levels of dopamine because they convert into dopamine. Studies have also shown that foods that are high in sugar increase dopamine levels for a short time. This spike and the following dopamine crash can lead to addictive behaviors towards food. Massages can alter dopamine levels! Research has shown that dopamine and serotonin increase during massages, and cortisol (the “stress hormone”) decreases. Thirty percent of the United States population has
Read more

MAHENDRA SINGH DHONI Started Farming in Ranchi

Image
  After Retirement From International Cricket he started organic farming MS dhoni have 45 acres land in which he started organic farming where crops like cauliflower, tomatoes, carrots, spinach, strawberry and etc are grown which is a true inspiring story for everyone and his fans all over India. Dairy farm is in construction where many breeds of cow and buffalos are brought the planning is for 300 cows in initial stage many animal doctors and staffs are available for taking care of animals Poultry farm is also done  Poultry farming is one of the fastest-growing and most profitable agri-business in the current Indian market scenario. Moreover, poultry business is the best idea for those who want to pursue a successful agri-business career in India. Poultry farming is defined as ‘raising different types of domestic birds commercially for the purpose of meat, eggs and feather production. main aim for him is VOCAL FOR LOCAL The crops are gown are taken out for ranchi crop market for the s
Read more