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LG Phones: The End of an Era and the Rise of New Growth Engines at LG Electronics

General Report June 15, 2025
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TABLE OF CONTENTS

  1. The End of LG's Smartphone Era
  2. Shifts in the Global Smartphone Market
  3. LG's Subscription-Based Appliance Growth
  4. Software and Display: webOS Hub 3.0 and OLED Pivot
  5. Diversification into Smart Monitors and Beyond
  6. Conclusion

1. Summary

  • As of June 15, 2025, LG Electronics has officially concluded its decade-long involvement in the smartphone market, marking a significant shift in a sector where it was once the third-largest mobile brand globally. This transition culminated in the closure of its handset division, which was announced in April 2021, and the impending termination of software support, set to finalize on June 30, 2025. Following LG's exit, the smartphone dynamic saw Samsung regaining its position as the leading global vendor during Q1 2025, a clear indication of the void left by LG’s departure. Concurrently, LG is experiencing robust growth in its subscription-based home appliances, rebranding its Rent-Up program to LG Subscribe, with projections indicating nearing $1.5 billion in annual revenue by the end of 2025. This pivot reflects an evolving consumer preference for subscription services that provide convenience and managed maintenance for essential appliances.

  • In addition to its subscription growth, LG is enhancing its software and display capabilities through the introduction of webOS Hub 3.0 and progressing towards a profitable OLED technology pivot. As LG launches innovative products like the LG Smart Monitor Swing, which is scheduled for release in Australia in July 2025, the company is broadening its portfolio to encompass smart monitors that combine productivity and entertainment features.

  • The current landscape indicates that LG is strategically realigning its focus away from the saturated smartphone market towards growth engines that promise higher profitability and consumer relevance. This report delineates the completed, ongoing, and planned developments within LG's operations, offering insights into the company’s strategic maneuvers and future outlook.

2. The End of LG's Smartphone Era

  • 2-1. Closure of smartphone division

  • LG Electronics officially announced the closure of its smartphone division in April 2021, marking the end of its operations in a market where it once stood as the third-largest mobile brand globally. The decision stemmed from LG's inability to keep pace with fierce competition from both emerging players like Oppo and Xiaomi, as well as established giants such as Samsung. After over 15 years in the smartphone market, the closure symbolized a significant retraction for the South Korean tech giant, which had produced notable devices such as the PRADA Phone and the LG Wing 5G. This strategic withdrawal allowed LG to redirect its focus towards more profitable avenues.

  • 2-2. Support termination deadline

  • The final deadline for software support from LG for its smartphones is set for June 30, 2025. After this date, users will no longer receive essential upgrades or security patches, which raises significant concerns regarding device security vulnerabilities. Despite LG's commitment to provide three years of support following the division's closure, the conclusion of this service represents the official end of the company's mobile business. LG has urged its customers to upgrade their devices before the cutoff to avoid exposure to potential cyber risks. This issue of unsupported software post-termination underscores the critical responsibility users carry in ensuring the security of their devices.

  • 2-3. Implications for existing users

  • The shutdown of LG's smartphone division and the subsequent termination of software support pose substantial implications for existing users. As of June 15, 2025, users are urged to take action before the impending deadline, as failure to do so will leave their devices vulnerable to security threats. The cessation of updates means that users will no longer receive protections against newly discovered vulnerabilities, leading to fears of cyberattacks. The sentiment among consumers has been mixed, with many expressing nostalgia and frustration over the loss of a brand that once contributed innovative designs and features to the market. As highlighted in some user comments, there is a sense of loss in the diversity of options available to consumers following the exit of LG and other notable brands from the smartphone sector, which some argue has led to stagnation in market innovation.

3. Shifts in the Global Smartphone Market

  • 3-1. Q1 2025 smartphone shipments

  • In the first quarter of 2025, the global smartphone market experienced slight growth, marking an increase of 0.4% year-on-year. Total smartphone shipments reached 301.4 million units, according to data released by the International Data Corporation (IDC). This uptick occurred amidst complex geopolitical tensions and trade uncertainties, particularly between the United States and China, which have significantly influenced market dynamics.

  • Samsung emerged as the leading smartphone vendor during this period, shipping 60.6 million units and achieving a market share of 20.1%. This was a modest increase compared to Q1 of 2024, attributed largely to the robust performance of its Galaxy S25 flagship and the more budget-friendly Galaxy A36 and A56 models, which successfully integrated advanced AI features.

  • Notably, Apple followed closely behind, reporting its best-ever Q1 with 58.7 million units shipped, reflecting an 11.6% year-on-year growth. Despite this achievement, Apple did not reclaim its position at the top of the market due to vulnerabilities in the Chinese market and potential tariff implications. Samsung's strategy of embedding AI capabilities across its product range has played a crucial role in enhancing its competitiveness, particularly in economically sensitive segments.

  • 3-2. Samsung retakes market lead

  • Samsung's return to the forefront of the global smartphone market in Q1 2025 represents a significant shift, as it edged past Apple to reclaim its title as the world's leading smartphone manufacturer. The company's success was bolstered by its proactive engagement with AI technologies, which enhanced the functionality and appeal of both its premium and mid-tier devices.

  • The new Galaxy S25 and the economically appealing A series have shown significant consumer traction, particularly among users seeking advanced features at competitive price points. This strategy reflects a broader trend in the market, where affordability combined with innovative features can dictate consumer preferences, especially in emerging economies where budget constraints are prevalent.

  • 3-3. LG’s market exit impact

  • LG’s exit from the smartphone market in April 2021 has left a noticeable void, prompting shifts in market dynamics as other manufacturers sought to capture the share formerly held by LG. As of Q1 2025, it is clear that this exit has allowed competitors, particularly Samsung and local Chinese brands, to consolidate their positions more firmly.

  • The absence of LG has not only influenced market shares but has also led to intensified competition among remaining players, particularly as they innovate in areas where LG had previously been active. The consolidation of market power in the hands of fewer manufacturers may result in accelerated product development and marketing strategies as they strive to fill the gaps in the market.

4. LG's Subscription-Based Appliance Growth

  • 4-1. Subscription sales nearing $1.5 billion

  • As of June 2025, LG Electronics is experiencing significant growth in its subscription-based appliance business, projected to surpass 2 trillion won (approximately $1.5 billion) in annual sales for the first time this year. This expansion reflects a 45% increase in subscription sales during the first quarter of 2025 compared to the prior year, driven largely by heightened consumer demand for managed maintenance services for everyday appliances such as water purifiers, air purifiers, and washing machines. Analysts indicate that the trend towards maintenance service subscriptions aligns with the evolving consumer preferences for convenience, particularly among single-person and dual-income households, who increasingly seek services that alleviate the burdens of ownership and maintenance.

  • 4-2. Rebranding to LG Subscribe

  • In a bid to enhance clarity and appeal, LG Electronics recently rebranded its Rent-Up program to LG Subscribe, marking Malaysia as the first global subsidiary to fully embrace this subscription model. The rebranding initiative seeks to eliminate confusion surrounding the term 'rent', which often conjured doubts about ownership duration among customers. Speaking at the unveiling event, LG's Managing Director commented that 'LG Subscribe' conveys a modern and flexible approach to making cutting-edge technology more accessible. This strategic pivot not only reinforces LG's commitment to its 'Life’s Good' philosophy but also aligns with successful models already established in other markets such as Korea, Singapore, India, and Thailand.

  • 4-3. New offerings like LG PuriCare ATOM-U

  • Complementing the rebranding, LG introduced the LG PuriCare™ ATOM-U, a sleek under-sink water purifier tailored for modern homes, exemplifying LG’s commitment to innovation in subscriber offerings. This appliance features advanced purification technology and a compact design, reflecting LG's aim to enhance both functionality and aesthetic appeal in home environments. The introduction of products like the ATOM-U underscores LG's holistic approach to subscription services, wherein customers not only access high-quality appliances but also benefit from bundled services that may include installation, maintenance, and smart integration through LG ThinQ™ technology.

5. Software and Display: webOS Hub 3.0 and OLED Pivot

  • 5-1. Launch of webOS Hub 3.0

  • On June 13, 2025, LG Electronics officially launched webOS Hub 3.0, representing a significant upgrade to its existing television platform aimed at third-party brands. This latest iteration includes advanced AI technologies designed to enhance the viewing experience and streamline user interactions. Notably, webOS Hub 3.0 has introduced notable AI-driven features such as 'Voice Recommendation' powered by ThinQ AI, which personalizes content suggestions based on user preferences. Additionally, the platform now boasts an 'AI Picture' feature that employs Neural Network Super Resolution to enhance visual quality, alongside an 'AI Sound' function which effectively reduces noise while boosting voice clarity. The upgrade also expands the technical capabilities of the platform, supporting both UHD TVs with 60Hz displays as well as new models equipped with mini-LED technology set to launch in July 2025. These improvements come at a time when LG is firmly establishing webOS Hub as a leading contender in the competitive TV platform market, recognized for its user-friendly interface and robust functionality, it has welcomed over 600 brands into its ecosystem within the last five years. LG’s strategic focus in this launch not only pertains to consumer enhancements but also encompasses broadening its B2B partnerships, thus reinforcing LG’s position within the platform business.

  • 5-2. LG Display’s Return to Profitability

  • After enduring several years marked by substantial financial losses, LG Display appears on the verge of achieving profitability, largely attributed to its strategic pivot towards OLED technologies. As reported on June 12, 2025, the company has implemented comprehensive cost-cutting measures alongside a focused effort on advanced display innovation. This restructuring has been bolstered by successful fiscal management and improved operational efficiencies, enabling LG Display to revive its financial standing. The return to profitability signifies not just a recovery from previous financial strains but also highlights LG Display's resilience in navigating the volatile consumer electronics landscape. This strategic turn positions the company to capitalize on the rising demand for OLED displays, which are increasingly favored for their superior color accuracy and energy efficiency compared to traditional LCDs. As the market evolves, LG Display's comeback is indicative of shifting consumer preferences and the potential for sustained growth within the high-end display segment.

  • 5-3. Strategic Focus on AI-Powered Platform

  • The integration of AI across LG's webOS Hub 3.0 is paramount to its future strategy, as indicated in the latest platform release. This strategic focus aims to harness the capabilities of artificial intelligence not only to enhance user engagement and satisfaction but also to drive operational efficiencies across the board. Key features such as the 'Home Hub IoT solution' are designed to create personalized environments by allowing users to control various smart home devices directly through the TV interface. Furthermore, the 'Gaming Portal' included in webOS Hub 3.0 enhances the gaming experience by providing seamless access to cloud gaming applications and optimizing performance through features tailored for gamers. Such strategic innovations ensure that LG can maintain its competitive edge in an increasingly crowded market, reinforcing the appeal of its platform for both consumers and third-party developers alike.

6. Diversification into Smart Monitors and Beyond

  • 6-1. LG Smart Monitor Swing features

  • The LG Smart Monitor Swing (model 32U889SA) represents a significant advancement in the category of smart monitors, offering a 32-inch 4K UHD display (3, 840 x 2, 160 resolution) that enhances both productivity and entertainment experiences. This monitor is equipped with touchscreen capabilities, allowing for intuitive interaction directly on the screen, thus facilitating various applications such as digital art, media consumption, and productivity tasks without the need for a connected PC. Additionally, the monitor features a rolling stand that enables users to adjust the display's position and angle, fostering ergonomic adaptability. This is particularly beneficial for activities ranging from watching films in a relaxed position to using the monitor in a standard desk setup, making it a versatile addition to any home or office environment.

  • The monitor is also embedded with LG's webOS platform, supporting a wide array of productivity and entertainment applications. This allows for seamless transitioning between tasks, such as accessing cloud-based office tools and media streaming services. Enhanced features include an Auto Pivot function that automatically adjusts the screen's orientation based on the content being displayed, particularly improving usability for applications that are optimized for short-form video or vertical layout. Connectivity options are up-to-date and versatile, including USB Type-C with power delivery and HDMI inputs, supporting compatibility with various devices.

  • 6-2. Australia launch timeline

  • The LG Smart Monitor Swing was officially announced on May 28, 2025, with plans for a launch in Australia slated for July 2025. Prior to this launch, LG initiated a pre-registration and pre-sale period beginning in June 2025, indicating a strategic move to generate consumer interest and secure early sales. As of June 15, 2025, LG is actively preparing to enter this competitive market segment, aiming to attract a wide range of users by promoting the monitor’s multifaceted capabilities.

  • This timeline reflects LG's commitment to not only introducing innovative products but also doing so in a manner that maximizes market impact and consumer engagement. The positive reception of the LG Smart Monitor Swing, underscored by its CES 2025 Innovation Award recognition, bolsters the expectations of successful market entry.

  • 6-3. Expansion of product portfolio

  • LG's venture into the smart monitor market, exemplified by the Smart Monitor Swing, marks a deliberate expansion of its product portfolio beyond traditional consumer electronics. By diversifying into smart monitors, LG is capitalizing on the growing demand for multifunctional displays that blend the lines between entertainment and productivity. As users increasingly seek devices that can perform a variety of tasks, LG's approach anticipates these trends and aims to establish a foothold in a burgeoning sector.

  • This diversification is part of a broader strategy by LG to enhance its presence in various technology domains, aligning with its recent pivots towards subscription services and software platforms. By integrating advanced technology into the Smart Monitor Swing—such as enhanced display functionality, built-in speakers, and the ability to operate independently of a PC—LG is positioning itself to not only capture a share of the smart monitor market but also appeal to consumers looking for all-inclusive, innovative solutions that cater to their diverse needs.

Conclusion

  • The strategic withdrawal from the smartphone business serves as a crucial inflection point for LG, enabling the reallocation of resources to more promising areas such as subscription services, software innovation, and display technologies. As seen with LG Subscribe’s projected $1.5 billion revenue, the company is well-positioned to capitalize on the growing consumer demand for flexible ownership models and enhanced home electronics experiences. The launch of webOS Hub 3.0, bolstered by advanced AI capabilities, further enhances LG’s potential to create immersive viewing experiences and maintain competitive advantages in smart display initiatives.

  • Looking forward, LG's engagement with AI across its platforms is not merely a trend but a fundamental strategy that shapes the user experience and strengthens its market position. The introduction of versatile products such as the LG Smart Monitor Swing is indicative of the company’s commitment to offering multifunctional solutions that meet diverse consumer needs in both home and office environments.

  • To maintain a trajectory of innovation-led growth, LG must consider deepening its integrations of AI across all product lines, refining its subscription ecosystem, and exploring adjacent markets. Areas such as health-oriented appliances and ergonomics in workplace solutions present new opportunities for LG to further entrench itself in evolving consumer lifestyles. As the landscape of consumer electronics continues to shift, LG's proactive approach could ensure sustained relevance and market leadership in the forthcoming years.

Glossary

  • LG Smartphones: Refers to the mobile phones manufactured by LG Electronics, which ceased production as of April 2021. The conclusion of this product line marks a significant shift in the smartphone market, affecting consumer choices and market dynamics.
  • Support Termination: The process by which LG Electronics will discontinue software updates and support for its smartphones, scheduled to finalize on June 30, 2025. This cessation raises concerns about security vulnerabilities for users of LG devices post-termination.
  • LG Subscribe: A rebranded subscription service from LG Electronics, previously known as Rent-Up, aimed at offering customers flexible ownership of home appliances. This initiative targets the growing preference for subscription models, reflecting changing consumer habits towards product access and maintenance.
  • OLED Pivot: LG's strategic shift towards manufacturing OLED (Organic Light Emitting Diode) displays, which are favored for their superior visual quality and energy efficiency compared to traditional LCDs. This pivot is key to LG Display's return to profitability as of June 2025.
  • webOS Hub 3.0: The latest iteration of LG's television platform launched on June 13, 2025, which incorporates advanced AI features like personalized content suggestions and sound clarity enhancements. This platform reflects LG's efforts to enhance user experience and expand its ecosystem.
  • Smart Monitor Swing: A new product from LG set to launch in Australia in July 2025, featuring a 32-inch 4K display with touchscreen capabilities. This smart monitor combines entertainment and productivity, signifying LG's diversification into multifunctional displays.
  • Q1 2025: Refers to the first quarter of 2025, during which the global smartphone market saw a slight growth of 0.4% year-on-year. This period is significant for analyzing shifts in market dynamics following LG's exit from the smartphone sector.
  • Consumer Electronics: A broad category encompassing devices primarily designed for personal use, such as televisions, smartphones, and home appliances. LG's focus on this sector has shifted significantly post-smartphone division exit as the company emphasizes subscription-based products.
  • Market Shift: Describes the change in competitive dynamics in the smartphone sector following LG's exit, allowing other manufacturers like Samsung to dominate. This shift has intensified competition and influenced product development strategies across the industry.
  • AI-Powered Platform: Refers to platforms, such as LG's webOS Hub 3.0, that integrate artificial intelligence technologies to enhance user experience. These platforms utilize AI for personalized content delivery and device management, crucial for maintaining competitive advantage.
  • Subscription Appliances: Home appliances offered through a subscription model, highlighting a trend towards convenient, managed ownership rather than traditional purchases. This model reflects changing consumer preferences towards flexibility and reduced responsibilities for maintenance.

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