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 pe...
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