LG has released their financial results for the year 2017, and it shows that the company for the past few years has suffered various losses. However, at the start of 2017, the company did find a bit of footing, which it lost with the progressing fiscal year. There were reports stating that the company might pull out of the largest smartphone markets in the world.
This seems to have now come to fruition, as LG has indeed pulled out of China. The reason given by the brand is that the company is facing huge competition from the local Chinese brands like Xiaomi, Meizu, AllCall etc.
A company representative in a media statement stated that the company’s decision to call it quits in China is directly linked to the fact that it could only gain in one quarter of 2017 since the start of 2015, which was when LG’s decline started. It could be seen that LG was losing interest in the Chinese market, as its last launch in the country was the LG G5 SE which was launched in May 2016.
Reportedly, in 2016 LG was only able to sell a meagre 1,60,000 smartphones in China out of the total 480 million global shipments. The company, as per the representative, will now focus more on the American and the European markets. However, there too it will be facing a lot of stiff competition from companies like – Apple, Samsung, Huawei, Xiaomi and more. We will keep a keen eye on how they perform in those markets from now on.