LG Mobile is reportedly all set to quit from world’s biggest smartphone market, China, pretty soon. The company has officially confirmed that is pulling outfrom theChinese market, as the South Korean giant is not able to compete with the local brands.
According to a Chinese report, the company’s representative at its Beijing office says that LG “mobile business has quit China”. The news comes following the release of LG’s 2017 financial results. While the company has posted good revenue, but the mobile division has posted a $192 million operating loss for the fourth quarter of 2017. The official press release also mentioned that LG is facing ‘strong competition from Chinese brands’.
LG market share in the Chinese market has been shrinking quite fast. The company sold about 480 million smartphones in 2016, out of which only 160,000 units are said to be sold in China. Further, the company has not launched its flagship devices, the G6 and V30 in China either. Interestingly, the LG’s China website only shows an old LG G5 smartphone in the mobile section, which further adds some strength to this report.
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Of lately, the Chinese players like Huawei, Xiaomi, Oppo, Vivo and more are making their presence felt in the Chinese market and each of them has a noticeable amount of market share in the country. For LG, the company chose the easy way out to exit the smartphone business in China, rather than opting for a more competitive pricing and specs war.