LG calls it quits with the smartphone market
LG has decided to stop producing smartphones, to focus on other areas of its business.
What's the key learning?
- The smartphone market is a highly competitive industry and LG did not execute its devices well enough to succeed
- LG took many risks, releasing too many Gimmick Smartphones
- Leaving the industry allows LG to focus on other growth areas of the business
WTF LG AREN'T MAKING SMARTPHONES ANYMORE
Electronics brand LG has become the first major smartphone brand to withdraw from the global smartphone market.
The South Korean company and its smartphones generally target price conscious customers.
The brands smartphone division has achieved almost six years of losses totalling almost $6 billion.
SO, WHAT IS THE KEY LEARNING?
In a highly competitive market, like the smartphone market, execution failures lead to corporate failures.
LG had its fair share of 'novel innovation', but terrible execution, such as:
- Releasing a curved phone, shaped like a banana
- Releasing another phone with an expandable screen (that nobody asked for)
It's fair to say quitting the insanely competitive smartphone space will mean it can focus on other growth areas of the business.
- Electric vehicle components
- Connected devices
- Smart homes.