As we previously reported, LG announced yesterday that it will stop manufacturing smartphones by the end of July. This decision was made after years of growing losses accompanying the work of the relevant division. Instead, the South Korean company will focus on sectors such as artificial intelligence, robotics and 6G telecommunications technology, as well as home appliances and televisions.
With LG leaving, other smartphone players have a chance to increase their market share. According to analysts, another South Korean giant, Samsung Electronics, may benefit the most from LG’s departure. This forecast was expressed by specialists from SK Securities and Counterpoint Research.
The key market in this regard is the US market, where LG is one of the three largest suppliers with a 10% share. In the fight for this tidbit, Samsung has an edge over Apple – using the same operating system – Android.
According to SK Securities analysts, following LG’s departure, Samsung’s market share will grow from 27% last year to 30% this year, while Apple’s share will decline from 39% to 36% over the same period. At the same time, the overall demand for smartphones will grow by 16%. It is expected that about 150 million devices will be sold in a year.