After LG decided to leave the global smartphone market, Samsung seeks to take over the share of its hometown rival in the US.
A few weeks ago, LG finally decided to leave the smartphone market after suffering heavy financial losses. It’s certainly sad to see an old company exit the market, but this strategy allows LG to focus on the profitable parts of its business. AI, robotics, and 6G connectivity are new focus areas for LG.
Of course, it seems that LG’s exit has been good news for other rivals, and they’re striving to conquer the Korean company’s share. One of the companies that hope for more shares is Samsung.
According to Nikkei Asia, LG used to have a 10% market share in the US, and it was the third-largest vendor in the area. This amount of market share is absolutely tempting, especially in the US competitive market.
Samsung currently holds a 25% market share in the US and established its second position after Apple. Taking over LG’s share will help Samsung close the gap with Apple and add millions of dollars to its bank account.
SK Securities predicted that Samsung’s share in North America could reach 30% in 2021, which shows a 3% growth compared to last year. Meanwhile, Apple’s market share may fall by a few percent. The Korea-based financial service provider also stated that the demand for smartphones in North America would reach 150 million devices in 2021.
Samsung is benefiting from LG’s withdrawal in North America
It may seem that LG’s withdrawal from the market will bring an equal chance for all vendors, but that’s not true. Thanks to a more diversified smartphone lineup, Samsung has a greater chance of acquiring LG’s customers. Samsung is currently working on a series of its new mid-range to flagship smartphones, hoping to entice LG smartphone owners.
Moreover, Samsung is seeking to expand its operations in the United States. Recently, they announced a plan for building a new plant for producing chips. This plant is in Austin, Texas, and can add 1,800 new jobs.
Of course, we should not forget about other brands. LG customers in North America mainly bought cheap phones and were not willing to spend a lot of money to buy high-end phones. Other brands like Alcatel and Motorola will have a chance to acquire new customers.
LG’s absence in the US mobile market could be an excellent opportunity for Chinese companies since they specialize in making low-cost phones with high features. But OEMs like Xiaomi, Oppo, and Huawei are not operating in the US.