The 3 reasons why LG died as a mobile brand

Not long ago in the mobile market there was a brand that, to this day, is still key in the technology sector. Right, we are talking about LG, the Korean giant that had to leave the smartphone market to stop losing money.

Anyone over the age of 18 will remember that LG was one of the biggest players in the smartphone business over the past decade. Not in sales, since it never occupied the first positions, but it was a relevant brand and with phones to take into account.

And, as you know, all of that came to an end last year, when the Korean company announced that it was exiting the smartphone business, effective July 31, 2021, after years of poor decisions.

Although many LG fans were surprised by the announcement, the news did not come as a surprise to experts, as Although LG was known for creating high-quality, innovative designs, the company had consistently battled its competitors without winning.

In addition, LG’s smartphone division had been losing money for years. In fact, in the five years prior to the announcement, the business had lost about $4.5 billion, putting LG in an untenable position.

Now, a year after that decision, these are the main reasons why LG’s smartphone business did not work, despite its efforts, its investment and its good ideas:

Stuck in the middle of nowhere: In many ways, LG’s luck was the result of being stuck in the middle of the smartphone market, unable to distinguish itself at either end of the spectrum.

In the high range, Apple and Samsung did not take long to gain a foothold. This is why LG often had to sell its phones at a lower price to compete with Samsung and Apple.. And this had the effect of diluting its premium brand image and hurting its ability to compete.

At the same time, the company’s phones were still priced too high to compete with the low-end on the market, dominated by companies such as Huawei and Xiaomi.

Innovation without vision: One of the things that set LG apart was its willingness to experiment and innovate with new designs. For example, the LG G5 had a modular design that allowed the user to swap out various components, such as the camera grip and an improved audio module.

Unfortunately, although interchangeable components sound good on paper, their practical application was limited. The same thing happened with the LG Wing, a phone with a rotating second screen.

When opened, it essentially formed a T, with the second screen perpendicular to the standard vertical. However, like the G5, the feature had limited practical application, especially given its high price.

bad software: This was a recurring complaint for over five years. Possibly, what weighed the most on the brand. While Apple, Samsung, and Google continually work to improve their users’ software experience, LG never seemed to care about its software.

It’s one thing for a cheap phone to have annoying software. When that phone tries to compete with Apple and Samsung, both in design and price, there is no room for a poor user experience. Unfortunately, LG never learned this lesson.

Although it never made it to the top echelon of the smartphone market, LG’s absence is still noticeable, even a year later. The company made solid, quality devices and wasn’t afraid to challenge the status quo with its designs.