LG Electronics factory in Hai Phong started producing home appliances from June 1
At the beginning of April this year, LG confirmed its exit from the smartphone business. Until May 31, the company has completed the transition of lines and parts of workers from electronics business to home appliances production at its factory in Hai Phong.
Established in 2015, LG Electronics factory in Hai Phong specializes in manufacturing digital devices such as smartphones, tablets, TVs and some household products. Several factories in this area are also owned by LG, producing components such as LG Innotek, which specializes in camera modules, and LG Display, which specializes in display panels. Currently, LG is also building a new 4-hectare factory here to serve the production of refrigerators.
LG becomes the first major smartphone brand to withdraw from the market
In more than 6 years of operation, LG’s phone division has lost $ 4.5 billion, leading to the decision to abandon its smartphone business. Even so, LG is still committed to keeping supporting existing devices. High-end models will receive three years of software support, Android 12 and Android 13 upgrades. Users will also receive other after-sales services for four years from the date of device manufacture.
LG was once a big name in the smartphone industry thanks to its pioneering devices in design, as well as its ultra-wide-angle camera. In 2013, it rose to the third position in the smartphone market after Samsung and Apple. However, after that time, LG gradually slipped. The company’s products gradually no longer receive much attention from users due to software errors and it’s hardware and software update time is slower than other Android competitors. In addition, some experts believe that the company lacks a marketing strategy compared to current Chinese rivals such as Oppo, Xiaomi, Vivo,… Meanwhile other big smartphone brands like Nokia, HTC and Blackberry also struggled but have not disappeared completely.
According to Korea Herald, abandoning the smartphone business will help LG focus its resources on manufacturing home appliances and aim to become the world’s largest home appliance manufacturer. According to some analysts, LG will reach $ 6.3 billion in revenue in the second quarter, surpassing Whirlpool to take the lead. This position can be maintained until the end of 2021.
|Writer: Phan Quyen||Editor: Tu Anh|