lg s exit from mobile phone business globally won t impact indian market much

“LG’s exit from the mobile business globally won’t affect the Indian market much,” Telecom News, ET Telecom

    LG, India's largest home appliance maker, has less than 1% share in the Indian smartphone market.  According to mobile industry tracker Counterpoint Researcher, LG gained a share of 0.3% in 2020, which improved slightly from 0.15% in 2019 due to a good performance in the recent festive sale.
LG, India’s largest home appliance maker, has less than 1% share in the Indian smartphone market. According to mobile industry tracker Counterpoint Researcher, LG gained a share of 0.3% in 2020, which improved slightly from 0.15% in 2019 due to a good performance in the recent festive sale.

Kolkata: Korean electronics maker LG Electronics on Monday decided to exit the global mobile phone business, a decision that industry analysts and executives said would not lead to any major turmoil in the Indian market as the company failed to capture significant share and revenue. of work was minimal.

LG, India’s largest home appliance maker, has less than 1% share in the Indian smartphone market. According to mobile industry tracker Counterpoint Researcher, LG gained a share of 0.3% in 2020, which improved slightly from 0.15% in 2019 due to a good performance in the recent festive sale.

As per the latest regulatory filings with the Registrar of Companies, LG India’s mobile business is at Rs 190 crore as compared to its total business of Rs 15,709 crore in 2019-20. In fact, the mobile business was the only losing unit of the Indian operation with a total loss of Rs 91 crore in the 2020 financial year.

Counterpoint Associate Director Tarun Pathak said LG’s stake was pretty much stagnant at 0.15%.

LG’s success in larger consumer devices could not lift sales of mobile devices. In fact, it was sandwiched between the competitive entry of mid-range offerings from Chinese brands and Apple, Samsung and OnePlus into the premium segment.

LG said its decision to exit the “incredibly competitive mobile segment” is to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, business solutions, platforms and services.

The company’s mobile staff in India has been reduced from about 100 odd executives two years ago to about 30 people today, headed by Advit Vidya. LG India said it will absorb the employees internally.

LG India has tried several times to relaunch the mobile business in India under the leadership of several companies, changes in distribution strategy recently focused on e-commerce and big chains, and products that were mostly in the mid-to-premium segment last year.

Being vertically integrated, Pathak said, LG had access to some great technologies and products, but the right go-to-market and portfolio strategy was missing.

LG said the winding down of the cellphone business is expected to be completed by July 31, though inventory of some existing models may still be available after that. The company said it will provide service support and software updates to customers of existing mobile phone products for a period of time.