Samsung will benefit from exit from mobile phone business

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Samsung will benefit from exit from mobile phone business

- LG Electronics' decision to exit its lucrative mobile business is expected to create more opportunities for Samsung than its other rivals in the US smartphone market, analysts said.

The LG Market share currently stands at about 10%, according to research firms Gartner and Counterpoint, adding that it was stronger in markets where it partnered with telecom companies to include its devices as part of a mobile plan.

LG tends to cater to the higher end of the market, so it could grab a small portion of the Apple's sales, analyst Tuong Nguyen said. It's more likely that Samsung inherits a lot of it because both vendors compete across similar markets.

Globally, LG's market share shrank in 2020 to 2%, a massive drop from its status as the third largest smartphone maker in the world behind Apple Inc and Samsung Electronics during its peak in 2013.

According to Counterpoint, the company shipped 23 million phones last year compared with the 256 million of Samsung.

The Counterpoint analyst Tarun Pathak said LG was mostly in the mid-tier, as its flagship phones received tepid market response.

So it will be mostly Chinese and mid-tier brands benefiting from the LG exit. Samsung, Motorola, HMD will benefit mostly in its key market like USA while Pathak said Xiaomi, Motorola would benefit in Korea and Samsung in Japan.

On Twitter, tech enthusiasts lamented the exodus of the once ubiquitous name in the smartphone industry, with many crediting LG for introducing the now familiar features such as the super wide angle camera and capacitive touchscreen in mobile devices.

They did n't always ace every phone, but losing them means losing a competitor that was willing to try new things even when they did n't work, popular YouTuber Marques Brownlee said in a tweet.

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