South Koreans electronic giant has confirmed the news of LG Mobile Business Shutting Down earlier this week on 5 April 2021. It is surprising for users who made a purchase or are a user already.
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Now, with this announcement the curiosity has gone high. Questions like what will happen to the existing users or new users who just purchased LG smartphones. Will the inventory be taken down from the market completely or any levy will be provided?
Thereby, to shape these curious yet obvious questions, we came up with researched answers and collected facts.
Why LG Mobile Business Shutting Down?
As per the statement made by the company, shutting down the mobile unit will allow the company to focus on other businesses including artificial intelligence, electronic vehicle components, connected devices, and smart homes.
In another statement, the company assured its existing and new customers that it will provide timely updation and necessary hardware services to prevent its customers inconvenience.
One of the valid reasons after giving the business closure is the continued losses since 2015. Hence, it was quite obvious for LG to done away with mobile business. The company could not achieve its target, suffered for 23 consecutive quarters, and eventually ended at only 2% Global share in the third quarter of 2020.
Would it affect sellers and customers?
Well, a pull-out from the market will affect both the seller and customer in some way and the company understands that. That is why the company has assured the customers of both the existing and new by their promising policies regarding updation and inventory clearance.
As per the assurance provided by the company the G and V series smartphones will get a three-year Android updation. The following series includes LG V50, LG V60, LG G8 series, and the trio of LG Velvets and LG Wing. Whereas an Android updation of two years is committed to the LG Stylo 6, LG K61, LG K51S, and LG K41S.
Therefore, if you are one of the LG smartphone users or sellers, you can rest assured for the coming two and three years in case of software updation directly by the company.
When will the Shutdown complete?
The shutdown from the smartphone unit is said to be completed by July 31 this year. Hence, the company will try to sell its entire inventory in the highest possible quantity. As a result, the possibility that you might see a down in price for that purpose only.
Should you make a purchase now?
LG has been a quality provider in its electronics and there is no denying that the recent ones are from the same basket. In terms of LG phones its body, features, and other services, the company has been offering the best in the market at an affordable price. The only measure that they might lag behind was ineffective marketing of their smartphone like other competitors of it did successfully.
Moreover, LG is committing to provide utmost from its side even after the closure. Thus, by 2023 you can rest assured of its hardware and software services. The company is preparing service parts like charger, battery, power cable, etc which will be available via third-party assistance (local customer service) available in your nearby area.
What about other products of LG?
For now, LG is only terminating mobile units whereas there are other products available in the market that will be continued. Even the inventory with the stock will also be available for sale.
Talking about its other products like LG TONE Free and wireless Bluetooth speakers will be in production and be continued to sale, unlike the smartphones. Besides this LG said that it would still be working on developing advanced mobile technologies like 6G.
What will happen to the Mobile unit employees?
The company has an answer for this and is significant from an employee point of view. As per the sources, the company will switch the department for the employees working under the mobile unit. They will transfer to the business unit and for now, some employees are already transferred.
Will the draw of LG phones tweak the market?
In one word, yes. If you have been an LG phone user, you will understand that LG invested enough in its body and provided rich features which otherwise cost high in other brands phone. The durability of its phone is also a plus point both in hardware and software.
Not to mention, the draw of LG phones from the market will tweak the strategies of the brands. It was almost 12 years back in 2009 when LG first launched its smartphone. In those days, it captured the market providing rich features and a solid body. It came with innovative up-gradation each year and became a popular competitor in the market of smartphones.
LG with its low marketing strategies could not meet its expectation. It suffered losses in the last 6 years which is a valid reason to quit the market and focus on other products that helps it gaining the market.
Nonetheless, the company took care of its customers as always. Therefore, LG mobile business shutting down may have some impact on the market but not on you.