LG, the South Korean smartphone electronic company, has decided to leave the smartphone market after seeing the demand for its product decreasing continuously. This is just one of the reasons why LG has opted to exit. As the old player leaves, the existing player will tighten their seat belts as they fight to gain LG’s market share. According to the reports, the two companies which are front-runners to land LG’s market share are Samsung and Oppo.
At one time, LG was one of the top three smartphone brands, although, it has been seeing losses since the second quarter of 2015. We know that there are many players in the smartphone market. After the arrival of Chinese companies in the global markets, many companies have often found it hard to survive. Due to the tough competition from Apple and Samsung and the flooding of Chinese smartphones, LG has decided to leave its loss-making business.
As you are well aware that there are two types of smartphone markets in a broad sense. One which consists of smartphones run by Android and the other by iOS. Samsung and Apple are the market leaders in both of these devices. With the likes of Huawei facing huge sanctions from the US, companies like Xiaomi and Oppo have really thrived.
With a big player like LG gone, the battle to capture more market share will begin. Which strategy a smartphone company adopts will be seen soon. LG’s key markets included regions like Europe, South Korea, and a few Southeast Asian markets. Samsung has a robust presence in these markets and can attract more customers due to LG’s absence.