As was widely predicted, LG has officially quit making phones. After years of mounting losses LG said it will close its mobile business by July 31. The decision came two months after the company hinted at exiting from its loss-making mobile communications (MC) unit.
Though it was said that a Vietnam-based company would take over it, quite evidently, it didn't pan out that way.
But what does LG's exit from the mobile business mean to the market, especially to its South Korean adversary Samsung?
In India, LG has always been a fringe player, and had never reached any great heights, and hence its absence will not even create a ripple. It has a market share of less than 3%, according to industry estimates in India.
But elsewhere, its exit can have some minor impact. Or so say analysts.
LG and its global presence
LG is said to be at number 3 in terms of market share in North America and at 5 in Latin America. But its share in global market was a measly 2% and was the world's ninth-largest smartphone vendor last year after shipping 24.7 million smartphones.
The only place where LG had a double-digit market share was at its home country South Korea.
LG's market share in South Korea was pegged around 10% in February last, which was a fall of around 4 percentage points from a year earlier.
Now that it is off the market, LG's principal adversary Samsung is expected to further consolidate its market presence in their home country.
In South Korea, Samsung had a market share of 69% in February, up 4 percentage points from a year ago.
Samsung moves in for kill
Knowing that LG is exiting, Samsung has already made its move, and has offered a trade-in program for LG mobile users.
Basically, Samsung has come up with a scheme wherein LG users can exchange their devices for Samsung's Galaxy S21 series or Z foldable models.
Will LG users move to a brand like Apple or any other Chinese brand? Well, according to a news report in Korea, "LG smartphone users in South Korea are likely to switch to Samsung devices down the road since a large number of smartphone users are still more familiar with Android-powered phones instead of Apple's iPhones that use iOS mobile operating system, while Chinese brands have very little presence here."
Still, the speculation is that the aggressive Chinese brands will unleash their campaigns, and South Korea is one of their destinations. Xiaomi is said to have some plans up its sleeve.