Why LG Stopped Making Phones In 2021 | Shocking

LG is known as one of the leading Consumer Electronics companies in the world. Primarily known for their home appliances (TVs, Refrigerators, Air conditioners..) and mobile devices, so it was a total shock when it was announced that LG stopped making phones in 2021.

Founded in Seoul (South Korea) in 1958, LG’s mission was and has always been to provide the nation with domestically-produced consumer electronics and home appliances. With their slogan ‘Life is Good’, LG wants to help consumers so they can experience more and achieve a better life. And this exactly what they have been able to do for the past 60 years now.

How long have they been making phones

LG entered the ‘Smart Phone’ industry as we know it in November 2009 with the LG GW620, also known as the LG Eve. The phone was running Android as an Operating System, running Android 1.5 (Cupcake) at the release time.

The phone featured a 3.0 inches display with a 320 x 480 resolution.

From that first phone, the rest was history. LG found some success in their phone lineup, so much so that they also started providing Tablets and smartwatches.

LG’s business has expanded and diversified in recent decades, with a number of its products arriving on North American shores and worldwide. But LG is now turning away from phones altogether and doubling down on other projects.

LG statement about no longer making phones

It was a bit of a surprise when the news broke from the LG’s Newsroom. The statement read:

“LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.”

Even though LG stopped making phones officialy, they promised that they would continue providing service support and software updates for customers of existing mobile devices. They’ll also work with suppliers and business partners as the company closes its mobile phone division to decide about current employees in that department.

Here’s a shortlist of game-changing phones introduced by LG over the years:

– LG Prada: released back in March 2007, it was the first capacitive touchscreen phone. It featured a 3.0 inches display with a 240 x 400 resolution. The Key feature was definitely the touchscreen as every other phone manufacturer in the industry adopted it, and that technology became an industry standard to this day.

– LG Optimus 2x: released in 2010, it was the first phone featuring a Dual-core processor, allowing a better and faster user experience, and it was also the first to support 1080p recording.

– LG Optimus 3D: released in 2011, it was the first phone with two rear cameras. This is a shocker to know that LG tried it as early as 2011. As we all know, almost all flagship phones feature two or more rear cameras, and it has become a common trend ten years later, and LG has always been at the forefront of that technology.

– LG G5: Released in 2016, it was the first phone with an Ultra-wide camera. It is safe to say that this feature has also been adopted by other manufacturers, and is currently found on many flagship phones to date.

Although LG introduced great phones with great features over the years, their sales have not always been able to rival those of other tech giants like Samsung or Apple.

This issue can be attributed to several things, but the main ones that always stood out are; branding or lack thereof, consistency, Signature.
These are not the only reasons why LG stopped making phones, but contributing factors.

Bad branding

What does branding truly means, you may ask! Branding is the marketing practice of creating a unified image for your company, a brand is the best way to break through the clutter and reach your ideal customer. It’s what turns first-time buyers into lifetime customers, and it even transforms indifferent audiences into enthusiasts or supporters of your business! Branding also helps you stand out in a big market full of competition where everyone’s fighting over attention.

It is so powerful because its goal isn’t just telling someone about yourself or getting them excited enough to buy something from you right away; instead, it lasts long after those initial interactions. The more time invested in one person (or group), the deeper their connection when interacting with your product. Branding could have been a big reason why LG stopped making phones in 2021.

However, LG never really seemed to stick to one, yet simple branding method. Despite having great phones, selling them has always been one of the biggest challenges for LG. Starting with how they named their phones. Here’s an example from its competitor; when naming phones, iPhone has always taken the easiest route, from the first iPhone, to know the iPhone 12.

They gradually went from the First Generation iPhone to the third, the fourth, and now the twelfth. Making it easier for consumers to know the difference between their phones, from the older ones to the newer ones. The same thing has been done by other manufacturers like Samsung. From the Galaxy one to now the Galaxy s21.

LG has always been known for introducing new phones with completely different names (identity) making it hard for consumers to keep track of their phone lineup. Here’s a quick example: “LG G7 ThinQ”, “V35 ThinQ”, “LG V60 ThinQ 5G Dual Screen”

Consistency

Over the past 10 years, LG has been one of the fewer companies trying new things and bringing new features to the market, but it was almost like throwing a bunch of things at the wall and see what would stick.

They introduced so many features that other manufacturers adopted and still use to this day. Like Ultra Wide cameras with the LG G5, the first 18×9 display with the LG G6 introducing the rectangular aspect ratio on phones, 3 rear cameras with the same focal lens with the LG V40…

However, LG never really followed up on these features. LG would introduce a new feature, just to remove it the next year and so forth. Just like the self-healing back on the G Flex, curved phones, modular phones with G5…

When these features didn’t catch on right away, they would be gone the next year. It’s not likely you’d want to buy into an ecosystem of modules if you’re not sure whether some of the features you bought the item for will be around next year or next time you want to upgrade your gadget.

This behavior from LG made it hard to characterize their phones from a consumer standpoint.

Furthermore, LG would never stick to one design language. Their design was all over the place, something you could never expect from a company that has been in this industry for as long as they have. The same way some of their features would never see another day is the same way their design would completely change the following year. Their phones were never known for a specific design language. Consistency could have been a big reason why LG stopped making phones in 2021.

These three reasons alone are a big part of why LG stopped making phones.
LG has always made some great phones, and they have influenced how the phone industry changed its approach to delivery and marketing.

Marketing seems to be the only area where creativity was lacking.

You can read the full LG press release here. Hoping the question as to why LG stopped making phones was answered.