LG has just dropped the radio, Samsung and Chinese brands have scrambled to tear the remaining market pie

As has been expected, LG has officially abandoned the production of smartphones. After years of losses, the South Korean company said it would close its mobile business on July 31. The decision was made two months after the company representative hinted that the company was withdrawing from the unprofitable mobile communications division.

Trivia reports said that Vietnam’s Vingroup had approached to take over this division, but it was clear that things did not go that way.

And LG’s withdrawal also means that its direct competitors will have a chance to dominate this part of the market that is about to be left open, especially for its main rival Samsung.

In some small markets like India, LG has never had any impressive record with just 3% market share. Hence, its absence will not even produce a slight ripple. But elsewhere, the void it leaves behind can have some small impact.

LG is said to be 3rd in terms of market share in North America and 5th in Latin America. But its share in the global market was just 2% and it was the world’s ninth largest smartphone vendor last year after shipping 24.7 million smartphones.

The only place LG has a double-digit market share is in its home country of Korea.

LG’s market share in Korea reached about 10% in February 2020, down about 4% from a year earlier. Currently, LG’s main rival Samsung is expected to find ways to further consolidate its presence in the home market.

In South Korea, Samsung held 69% market share in February, up 4% from a year ago. And that is the 4% won from LG’s own hands. And as soon as it learned that LG was withdrawing from the ring, Samsung made a series of new moves, such as offering a device exchange program to LG mobile users.

Essentially, Samsung came up with a plan where LG users could swap their devices for their Galaxy S21 series or even their foldable Z Fold.

Of course, LG users can also choose to switch to a brand like Apple or any other Chinese phone brand. However, according to a report from local media: “LG smartphone users in Korea are more likely to switch to Samsung devices, as a large number of users are still more familiar with Android phones instead of Apple’s iPhones using iOS. , brands from China have very little presence here. “

However, in the current fierce competition, it is difficult to say anything in advance. Outstanding Chinese brands will soon launch promotional campaigns and Korea will be one of their destinations, side sources said. Especially Xiaomi, the brand that is said to want to stand up to Samsung’s current position, is said to have “hidden some plans inside its sleeve”.

Refer Techradar