After bidding farewell to China, the world’s largest smartphone market, LG announced that it would “retreat” from the Philippine market. Recently, an LG executive revealed that all of LG’s mobile phone business in the Philippines has been closed. The last flagship phone released by LG in the Philippines is G7 ThinQ, and the V40 ThinQ released in the past three months will not be listed in the Philippines.
Although the LG official has not confirmed this news yet, it seems that the LG’s “low tide” in these cases is not unexpected, because its mobile communication business has been declining in the past three years, and the loss has become the norm. According to LG’s latest financial report, the mobile communications business unit is currently the only unit in the company that has not achieved profitability.
According to recent financial reports, LG’s mobile communications business has suffered losses for 15 consecutive quarters. In 2016, the loss was $1.1 billion, in 2017 it lost $644 million, while it lost $440 million in 2018. At the same time, its market share is also falling. According to statistics from StrategyAnalytics, in the third quarter of 2018, LG’s share of the global smartphone market was only 1.9%. What do you think caused the LG smartphone business to lose nearly $2.5 billion for three consecutive years?