Today, I want to talk about the LG Electronics.
As the coronavirus epidemic continued at full speed, there was a development that surprised everyone. LG Electronics has announced that it has gone bankrupt. LG Electronics is a sub-brand of LG. Also, the company had considerable market share in the world. According to the statement made by the company officials, many companies were contacted for the sale of the brand. But any agreement was not established. Perhaps, companies are unable to allocate resources for this acquisition due to the ongoing pandemic.
LG Electronics owned 10 percent of the smartphone market in North America.
LG Electronics has increased its phone sales a little by using marketing strategies. Especially in the USA, it was behind Samsung and Apple. But it had 10 percent of the whole market. Increasing sales has forced the company due to production costs being increased. Also, the pandemic has increased hardness for the company. Thus LG Electronics has replanned their activities. Unfortunately, this new planning was not enough for the company.
The company has made more than $ 4.5 billion in loss in the last 5 years.
With the increasing volume of the smartphone market, some brands have increased their market shares. They are well-known brands such as Apple, Samsung and Huawei. This situation has reduced the market share of LG Electronics. Already, the company has lost huge money in five years. According to reports by the company, losses were more than 4 billion in five years. In the past years, HTC, Blackberry and Nokia have not been able to hold on to the smartphone market. Thus, they have suffered huge losses. However, it is the first time that a smartphone brand has filed for bankruptcy.
LG Electronics lagged far behind Samsung.
With the decline in recent years, LG Electronics’ share of LG company’s total revenue has decreased to 7 percent. On the other hand, while its biggest competitor Samsung sold 256 million phones last year, LG Electronics was able to sell 23 million phones. Perhaps this development was the last straw for LG. According to the statement made by the company, software and update support will be provided for a while. These supports will be provided by the company as regards the regions where users live. We will see what will happen in the coming days.