LG Smartphones What Went Wrong and What’s Next

 

Once a strong contender in the global smartphone market, LG Electronics was known for pushing boundaries in mobile innovation. With unique designs, pioneering features, and a loyal fanbase, LG smartphones held their ground in an intensely competitive space. However, by 2021, the brand made headlines with a shocking decision: LG officially exited the smartphone business.

This decision left consumers and analysts alike asking: What went wrong with LG smartphones? And more importantly, what’s next for LG in the mobile technology space?

In this article, we’ll break down LG’s rise and fall in the smartphone industry, analyze key mistakes, and explore the company’s current and future strategies in a post-smartphone era.

The Rise of LG Smartphones: A Look Back:

In the early 2000s and 2010s, LG mobile phones were synonymous with innovation. As a major player in the Android ecosystem, LG launched several iconic models:

• LG Optimus Series: One of the brand’s first successful Android lines.
• LG G Series: Known for stylish designs and competitive features.
• LG V Series: Targeted at creators and media consumers with superior audio and camera quality.
• LG Wing and Velvet: Later models with bold form factors and futuristic aesthetics.

In fact, LG was the third-largest smartphone manufacturer in the world in 2013, behind Samsung and Apple. The brand was particularly strong in markets like the U.S., South Korea, and parts of Europe.

What Went Wrong with LG Smartphones?

Despite a strong foundation, LG’s mobile division began to falter in the mid-2010s. Sales declined, and innovation began to lose its edge. Here are the key reasons LG smartphones failed in the competitive mobile market.

1. Lack of a Clear Brand Identity:

While competitors like Apple emphasized ecosystem simplicity and Samsung pushed premium features, LG smartphones struggled with brand clarity. The company launched multiple product lines with overlapping features, which confused customers.

Instead of building on a consistent flagship series, LG frequently shifted naming conventions, design languages, and features—leading to inconsistent messaging.

2. Software and Update Problems:

A major issue for LG was poor software support. Android updates were slow and often buggy. Consumers complained about long waits for critical security patches or major Android version upgrades.

In contrast, competitors like OnePlus, Samsung, and even Nokia prioritized timely updates, winning trust among tech-savvy users.

3. Hardware Innovation Without a Market Fit:

LG was undeniably bold when it came to design:

• LG G5 (2016) introduced a modular design but lacked ecosystem support.
• LG Wing (2020) featured a swiveling dual-screen but arrived too late in the game.
• LG Dual Screen accessories added functionality but felt clunky to users.

While these innovations were impressive technically, they didn’t align with mainstream user demands. In a market favoring simplicity and reliability, LG’s experimental hardware failed to gain mass appeal.

4. Weak Marketing and Brand Visibility:

Despite good products, LG phones rarely received aggressive marketing compared to rivals. Samsung, Xiaomi, and Apple invested heavily in advertising and brand partnerships.

LG’s marketing efforts felt modest, especially in emerging markets where price-to-performance and brand visibility are crucial. As a result, even strong LG smartphones like the LG V60 ThinQ or LG Velvet failed to generate buzz.

5. Competitive Pressure and Market Saturation:

By the late 2010s, the smartphone market was crowded with aggressive players like:

• Samsung (dominant in Android)
• Apple (premium market leader)
• Huawei, Xiaomi, Oppo, and Vivo (offering high specs at low cost)

LG’s pricing and product positioning fell into a “middle” zone—neither affordable enough for budget buyers nor premium enough for high-end consumers.

The Final Decision: LG Exits Smartphone Market:

In April 2021, LG Electronics announced its official exit from the smartphone business. It was a historic move, as LG became the first major smartphone brand to leave the market voluntarily.

The company cited long-term losses in its mobile division (over six years of financial decline), unsustainable competition, and a strategic need to focus on more profitable ventures.

Existing LG smartphone users were promised ongoing support and software updates for a limited time, depending on the region and device.

What’s Next for LG After Smartphones?

While LG may be done building phones, its story in mobile and consumer electronics is far from over. Here’s where the company is heading post-smartphone era.

1. Focus on Smart Home and IoT Devices:

LG has a robust presence in smart home appliances, including TVs, refrigerators, washing machines, and air conditioners. The brand is now integrating AI and IoT (Internet of Things) into these products under the LG ThinQ platform.

By leveraging its software and connectivity experience, LG is building a cohesive ecosystem of smart living products—something it hinted at even during its smartphone days.

2. Automotive Components and EV Technology:

One of LG’s most promising new ventures is in automotive technology. Through LG Vehicle Component Solutions and partnerships with companies like General Motors and Magna International, LG is investing in:

• Electric vehicle (EV) batteries
• In-car infotainment systems
• Smart dashboards and display technologies

This pivot allows LG to channel its expertise in displays and batteries into the fast-growing EV market.

3. Continued Role in Mobile Innovation (Behind the Scenes):

Though LG no longer sells smartphones, its technology is still used in the mobile world:

• Display panels: LG Display supplies OLED screens to companies like Apple and Huawei.
• Camera modules, batteries, and chips: LG continues to manufacture components used in other brands’ smartphones.
• 5G & Connectivity R&D: LG is still conducting research in 6G wireless technology and other telecom innovations.

In other words, LG smartphones may be gone, but LG's presence in the mobile ecosystem remains strong.

4. Potential for Re-Entry into Niche Devices:

LG has hinted that while mainstream smartphones are no longer a focus, it could revisit the mobile space through niche or experimental devices.

This could include:

• Foldable or rollable displays
• AR/VR headsets
• Wearables and mobile accessories
• Dual-screen tablets or gaming devices

These categories are less saturated and could play to LG’s strengths in design and display innovation.

Consumer Sentiment and Brand Legacy:

Even after its exit, LG smartphones are still fondly remembered by tech enthusiasts. Devices like the LG V30, LG G6, and LG V60 had standout features such as:

• High-fidelity DACs for audiophiles
• Wide-angle cameras before they were mainstream
• Military-grade durability
• Headphone jacks (when others abandoned them)

The decision to leave the smartphone market wasn’t due to a lack of innovation, but a result of misaligned strategy, poor marketing, and execution gaps.

What Tech Enthusiasts Can Learn from LG's Smartphone Journey:

LG’s story serves as a case study in tech innovation and market dynamics. Some key takeaways include:

• Innovation must meet market demand, not just technical novelty.
• Brand identity and consistent product messaging matter more than flashy specs.
• Software experience and ecosystem support are as important as hardware design.
• Aggressive competition requires sharp marketing and pricing strategies.

Conclusion: LG Smartphones—A Legacy with Lessons:

LG smartphones may no longer be in production, but their influence and contributions remain part of the industry’s DNA. From inventing ultra-wide cameras to exploring modular and dual-screen designs, LG consistently dared to think differently.

As LG moves forward, it will continue to impact the tech landscape through displays, smart home products, electric vehicles, and wireless innovation.

For fans of the brand, LG’s legacy in the mobile space is one of bold ideas, creative risk-taking, and valuable lessons for future tech leaders.