What LG Shutting Down Smartphone Service Means for Existing LG Users

It's the end of an era for a smartphone maker that was, at one time, the third-largest manufacturers of smartphones in the world. LG has announced that it will no longer be a player in the smartphone industry as it is bowing out of making mobile phones.

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My anniversary is next month and my husband decided that his gift to me would be a new cell phone and so for the past few weeks he's been pelting me with questions about what phone I want and what features I want. I guess I won't have to do research on LG phones because the company is stepping away from offering them.

LG Announces Its Getting Out of the Smartphone Business

After 12 years in the smartphone business, CNet reports that LG is bowing out of the phone business because sales haven't been where the company would like them to be. Instead, LG will focus on other things like smart home devices and electric vehicle parts.

LG Reports Loss in the Billions of Dollars

At one time, LG was the third-largest manufacturer of smartphones in the world but The Verge reports that 2020 was a crippling year for the company which only shipped out 23 million phones to consumers. On the other hand, Samsung had a great year, selling 256 million smartphones in 2020. LG had high hopes that things would turn around for them in 2021, but a slow start and the fact that the company saw a loss of several billions of dollars over the last five years.

LG Bowing Out Means Customer Boost for Samsung

While sales have already been stellar for Samsung, the departure of LG from the smartphone market will only help Samsung attract more customers. The South Korean companies have played a tug-of-war for the android market and with LG bowing out, Reuters says the LG's ten percent share of android customers is expected to slide over to Samsung.

What Now for LG Smartphone Users?

If you're an LG smartphone user, you might wonder what this means for you. How will the changes affect your warranty and service? According to an announcement on the LG website, LG will only continue to offer its smartphones while inventory supplies last. In other words, once the warehouses have sent out all existing phones, that will be it - no new phones will be manufactured. As for people who are existing LG users, the company website states, "We will fully honor our product limited warranties, and will also continue to provide software and security updates as well as replacement parts in accordance with applicable regulations and contractual obligations."