On 5 April 2021, LG officially announced that its mobile phone division will be shutting down. This is due to the fiercely competitive nature of the smartphone industry. While they will still provide support and software updates for customers who own LG smartphones, it will be a matter of time before all support ceases.
With that in mind, what exactly led to the downfall of LG? In this article, we'll be taking a closer look at the smartphone manufacturer in question to see what exactly caused them to shut down their mobile phone division. That all being said, let's get into it.
What LG was doing right
LG G3
In LG's prime, the LG G3 launched in 2014 was one of the company's best selling smartphones, packing features such as 4K video recording, 1440p display, and more. On top of that, LG was known for taking risks in its quest to produce the most innovative smartphones possible.
These include making the first smartphone with a capacitive touchscreen. LG was also the first to launch a phone with a dual-rear camera, something quite common by today's standards. That's not all, LG also unveiled the LG Wing, which has an incredibly unique feature - a secondary display with a swivel mechanism to display additional information.
It started going downhill with the LG G4's boot loop issue
LG G4. Known for having boot loop issues
However, LG started going downhill with the next generation. First, there was the notorious boot loop issue with the LG G4. Subsequently, the company encountered hardware malfunctions with the LG V10, V20, and more, which caused the devices to be practically unusable. To add insult to injury, LG was also hit with a class-action lawsuit shortly after.
Not only that, but LG was slow to roll out software updates and support for the latest Android operating system, causing potential buyers to pick other brands instead. The modular LG G5 was also poorly received at MWC 2016, causing the company to lose up to USD224 million in Q4 2016 alone.
It was so bad to the point it made Motorola's modular Z series smartphones looked a lot more attractive than LG phones at that time. Another factor was the problematic naming scheme. Names like the LG V60 ThinQ 5G Dual Screen sounded like LG just used a bunch of buzzwords to market their phones, which ended up confusing some customers.
On that topic, LG's marketing efforts included promo videos and advertisements that failed to communicate to the customers what their smartphones are great for. Additionally, LG did not have a core flagship series (similar to Samsung's Galaxy S series or Xiaomi’s Mi series). This meant that every time LG released a new smartphone, it's as if it were banking on winning the lottery ticket instead of earning consistent income.
LG G5
The tech specs of LG smartphones were not also inferior to devices from Xiaomi, Samsung, Huawei, OPPO, and more. This caused them to lose out on sales. For example, the LG Wing only came with a Qualcomm Snapdragon 765G chipset and IP54 water/dust resistance. On the other hand, its rivals had devices with a better chipset, up to IP68 rating, and a much higher refresh rate at lower prices. Despite knowing that, it was too late for LG to switch gears to recuperate their losses fast enough.
While we're on the topic, let's talk about the LG Wing. Sure, it is a unique smartphone with its secondary display, but it had its own set of issues. The phone was not only too expensive for the specs you're getting, but the second screen also felt very gimmicky. Since it uses a swivel mechanism, durability is another factor a buyer had to consider before getting it.
LG G8X ThinQ Dual Screen
Moreover, imagine how hard it will be to find accessories for it. You can't even find a protective case that can protect the swivel mechanism of the secondary display. Other than the Wing, LG also released the LG G8XThinQ Dual Screen, which only came equipped with a Qualcomm Snapdragon 855 chipset and a 60Hz display. In comparison, the rest of the industry had already moved on to the SD865 chipset and 90Hz displays. It's not like the LG device was cheaper either...
Closing thoughts
LG certainly took a lot of risks to stand out from the crowd. While it isn't necessarily a bad thing, they didn't have the foundation of a star smartphone series to provide a cushion if their innovative smartphones fall short. What LG could have done was innovate on top of ongoing market trends. At least the company will be assured that it's selling smartphones with trending features that consumers are interested in.
With all that said, we bid adios to LG's mobile division and thank them for all the innovations that have become core features of smartphones available in the market today. Manufacturers should take note of what LG was doing to avoid the same pitfalls of the fast-paced smartphone industry. What are your thoughts on what happened to LG? Let us know on our Facebook page and for more updates like this, stay tuned to TechNave.com.
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