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LG’s Smartphone Division’s Final Chapter: Shutdown Impacts and Market Shifts

General Report June 19, 2025
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TABLE OF CONTENTS

  1. The End of LG’s Smartphone Era
  2. Implications for Existing LG Phone Users
  3. Consumer Behavior and Secondhand Market Dynamics
  4. Competitors and New Entrants in the Smartphone Market
  5. LG’s Strategic Pivot Beyond Smartphones
  6. Conclusion

1. Summary

  • As of June 19, 2025, LG Electronics is navigating the final phases of its long-standing engagement in the smartphone market, culminating in an end-of-support date set for June 30, 2025. This impending cutoff effectively signals the conclusion of software updates and security patches for existing LG devices, a decision that has stirred a mixture of nostalgia and discontent among its user base. With an industry-altering history that spans over 15 years, LG's contributions to smartphone technology have included groundbreaking innovations such as the dual-screen LG Wing and the fashion-forward PRADA phone. Yet, as competitive pressures mounted from aggressive players like Samsung, Apple, and emerging brands like Oppo and Xiaomi, LG struggled to maintain its foothold, ultimately leading to its withdrawal from a fiercely contested landscape. Current market research reveals that fewer than one-third of European consumers are actively participating in trade-in programs, highlighting the limited fluidity in the secondhand market and complicating users' transition to newer devices in the wake of LG's exit. Simultaneously, the competitive landscape is witnessing significant shifts, with giants like Google regrouping their supply chains by partnering with TSMC for their Pixel series, while niche entrants such as the Trump family's mobile venture are presenting new alternatives for consumers disillusioned by LG's departure. In light of these developments, LG is strategically pivoting towards opportunities in artificial intelligence-driven robotics and digital signage, investing in innovative sectors that promise sustainable long-term growth. As this chapter closes, users must make critical decisions regarding their next devices, while the market at large adjusts to the absence of a once-prominent player.

  • In keeping with the consumer sentiment surrounding LG’s transition, the overall usage landscape is evolving, with many consumers extending their device lifecycles past typical upgrade periods. Business experts predict that the final updates for LG's phones will prompt users everywhere to reassess their technology needs, particularly as they confront the looming cessation of support. Amidst ongoing economic challenges, the secondhand smartphone market experiences stagnation, grappling with slow trade-in rates that now threaten to curtail the supply of affordable alternatives. The urgency for LG users to consider and implement upgrade or trade-in strategies is pressing, as industry analysts continue to forecast transformative growth across the broader mobile ecosystem propelled by both incumbents and newcomers alike. LG’s historic innovations are giving way to new technological advancements, as the once stalwart smartphone manufacturer redirects its attention toward leading some of the forefronts of the digital age characterized by AI technologies and smart robotics.

2. The End of LG’s Smartphone Era

  • 2-1. Closure announcement and timeline

  • In April 2021, LG Electronics officially announced the closure of its smartphone division, citing ongoing losses and an inability to compete effectively against rivals such as Samsung, Apple, Oppo, and Xiaomi. The announcement marked the end of a 15-year foray into the smartphone market, with the company's first Android phone debuting over a decade and a half ago. This closure culminates in a significant transition for the company, with the final software updates scheduled for June 30, 2025. As of now, less than two weeks remain for existing users to perform final updates to their devices before LG ceases to provide any additional software support, leaving devices vulnerable to security threats without patches or updates.

  • Users are urged to upgrade their handsets before this deadline, as LG has stated that after June 30, 2025, no further Android updates or security patches will be released. This decision signals an end not only to LG's software support but also to its once-prominent position in the smartphone industry, having peaked as the world's third-best-selling mobile brand during its heyday. As these last updates draw near, customers are reflecting on LG’s innovations and its contributions to mobile technology, with sentiments of nostalgia mixed with disappointment over the brand's exit from a competitive market.

  • 2-2. Historical overview of LG’s smartphone journey

  • Since launching its first Android phone over 15 years ago, LG made a noteworthy impact on the smartphone landscape with several pioneering designs and features. The company was known for its high-profile devices such as the PRADA phone and the unique LG Wing, which offered a dual-display interface. LG's role in the smartphone market was once formidable, as it consistently ranked among the top players globally.

  • However, competition intensified over the years, with rivals like Oppo and Xiaomi capturing market share and altering consumer preferences. Despite some innovations, LG struggled to maintain relevance and profitability, leading to its decision to shutter its smartphone division. Until the closure announcement, LG remained committed to providing updates to its users for a designated period of three years after the announcement, reflecting the company's acknowledgment of the loyalty of its customer base and the importance of maintaining user security. In retrospect, the decline of LG's smartphone division illustrates a broader trend in the industry where companies must remain agile and responsive to rapidly evolving market demands and competitive dynamics. The impending cessation of LG's mobile operations not only concludes an era for the brand but also prompts a reevaluation of customer trust and loyalty in the tech sphere.

3. Implications for Existing LG Phone Users

  • 3-1. End-of-support and security risks

  • As of June 19, 2025, LG's smartphone division is nearing the final termination of its support services. By the impending deadline of June 30, 2025, users will no longer have access to software updates, which includes critical security patches that ensure device protection against vulnerabilities. This cessation of upgrades is particularly concerning as it increases the risk of exploitation by potential cyber threats. After this deadline, the absence of regular software updates means that existing LG devices could become increasingly susceptible to malware, hackers, and other forms of cyber attacks. According to recent analyses, the final round of updates is scheduled to be released at the end of June, and LG has strongly advised users to secure these updates before support concludes. Failure to do so places user's personal and sensitive information in jeopardy, as no further measures will be taken to patch any discovered vulnerabilities post-support.

  • Industry experts highlight that the lack of updates will not only diminish the device's functionality over time but will also significantly affect user experience. The inability to install updates for functionality improvements or new features further emphasizes the need for users to consider transitioning to newer devices. Overall, the final cutoff for software support marks a definitive endpoint for LG's presence in the mobile operating system ecosystem, impacting all users as they weigh their future device options.

  • 3-2. Upgrade and trade-in options

  • With the imminent shutdown of LG’s smartphone division, users are encouraged to assess their upgrade and trade-in options urgently. As LG has confirmed that its mobile devices will no longer be available for purchase, new smartphone markets are being reshaped significantly, with numerous competitors aggressively promoting their latest models. Users now have a limited window to obtain the latest devices before the end of support, prompting many to explore alternatives leading up to June 30, 2025.

  • The trade-in landscape, however, poses its own challenges. Recent reports indicate that less than a third of European consumers typically engage in trading in or selling their smartphones when upgrading, which could further complicate users' ability to offset costs for a new device. As the secondhand market for smartphones encounters declines—in part due to prolonged device retention times—the viability of trading in an old LG phone might not yield the desired financial relief. Strategies aimed at enhancing trade-in schemes are being developed, yet the effectiveness of these programs remains to be seen. Users should evaluate both upgrade possibilities and the potential for trade-in value while considering how they can navigate these transitional dynamics effectively.

  • Furthermore, with new regulations shaping device import practices within Europe, users may find themselves at a critical juncture where opting for newer, more secure handsets is not only a preference but a necessity. The transition from LG smartphones calls for immediate action, pushing users to prioritize their mobile needs in the face of diminishing legacy provider support.

4. Consumer Behavior and Secondhand Market Dynamics

  • 4-1. Low European trade-in rates

  • Recent analysis indicates that only a minority of European consumers—specifically, less than one-third—are participating in trade-in or resale schemes for their old smartphones. This lack of engagement significantly constrains the volume of secondhand devices available in the market. According to CCS Insight, the first quarter of 2025 saw a 2% drop in the global secondhand smartphone market, a first in over three years. The report suggests that this decline is partially attributed to strong promotional offers on new devices, which may temporarily weaken the incentive for consumers to trade in their existing phones. However, CCS forecasts a recovery for the secondhand market later in the year as consumers continue to reevaluate their purchasing habits amidst ongoing economic pressures and a perceived stagnation in innovation among new smartphones. Moreover, consumer retention rates are leading to longer replacement cycles, with many users extending their usage of devices beyond 40 months. This trend results in a notable shortage of available inventory for the secondary market as many potential candidates for resale remain in active use.

  • 4-2. Environmental considerations of device turnover

  • The environmental impact of smartphone turnover is becoming increasingly relevant in the context of declining trade-in rates. The secondary market presents a more sustainable alternative to purchasing new devices, yet the minimal engagement from consumers hampers potential growth and environmental benefits. CCS Insight emphasizes that promoting trade-in programs and initiatives is crucial, as up to 100 million smartphones could potentially be resold each year if owners were motivated to participate in these programs. This increased focus on environmental sustainability is not just a consumer trend; it is also being driven by regulatory pressure within Europe to reduce electronic waste. With the EU Radio Equipment Directive now requiring devices to support USB-C charging, many imported smartphone models previously popular in Europe are unable to comply with this new regulation. Consequently, local markets are urged to innovate and enhance their trade-in offers to alleviate supply issues and ensure a steady influx of devices for resale. Analysts believe that efforts to secure internal supplies through trade-in programs will be vital as Europe increasingly limits the import of used phones from other regions, necessitating a reevaluation of traditional practices and consumer behavior regarding smartphone turnover.

5. Competitors and New Entrants in the Smartphone Market

  • 5-1. Google’s switch to TSMC for Pixel 10 supply

  • In a significant shift within the semiconductor space, Google has transitioned from utilizing Samsung's foundry for its custom Tensor chips to TSMC for the upcoming Pixel 10 series. This move was described as a 'shock' to Samsung, which had relied on its production capabilities for the Pixel line in recent years. However, Google’s decision to partner with TSMC indicates a strategic pivot aimed at enhancing performance and efficiency in its chip designs. The Tensor G5, developed exclusively by TSMC, is anticipated to debut later this year, and it underscores Google's commitment to evolving its hardware design to align with changing market demands. This transition comes amid reports detailing Samsung's ongoing challenges with semiconductor yield rates, particularly with the 3nm process, while TSMC is working at a significantly higher yield. Consequently, Google's shift is not merely a change in supply chain partners but a proactive measure to ensure the performance of the Pixel 10 meets the growing expectations from consumers and tech enthusiasts alike.

  • 5-2. Trump family’s made-in-USA phone venture

  • In an unexpected move into the mobile phone market, the Trump family has launched a new mobile phone venture through T1 Mobile LLC, aiming to tap into the narrative of American manufacturing. This initiative will feature a device priced at $499, alongside a mobile phone service offered at $47.45 monthly, reminiscent of Donald Trump's presidential terms. The venture is focused on providing a product that resonates with 'hard-working Americans' and promises U.S.-based customer support. As this new entrant stakes its claim in the saturated smartphone market, it positions itself against established brands such as Apple and Samsung. However, despite its unique appeal, experts suggest that the Trump phone’s impact on major players like Apple is likely to be minimal, given Apple's established ecosystem and vast user base. Nonetheless, it reflects a broader trend where emerging players attempt to redefine market dynamics amidst the backdrop of ongoing technological advancements and consumer preferences toward localized production.

6. LG’s Strategic Pivot Beyond Smartphones

  • 6-1. Expansion into AI Robotics

  • In a marked shift from its historical focus on consumer electronics, LG Electronics is intensifying its investment in artificial intelligence (AI) and robotics as pivotal components of its future growth strategy. This redirection comes in the wake of LG's decision to cease its smartphone production, compelling the company to explore alternative avenues for innovation and revenue generation.

  • LG's initiatives in robotics are broad and impactful, aiming to integrate AI technologies into both manufacturing processes and eventual consumer applications. Notably, LG has developed smart automation solutions through its Production Engineering Research Institute, where automation technologies such as predictive maintenance and AI-driven quality inspections are already operational in its factories. The deployment of over 200 autonomous guided vehicles (AGVs) in its ‘Lighthouse Factory’ in Clarksville, Tennessee serves as a prime example of how LG is merging robotics with AI to enhance production efficiency and safety. These advancements signal LG's readiness to transition its capabilities from traditional manufacturing to cutting-edge robotics.

  • Partnerships are also integral to this strategic pivot. Recently, LG signed a memorandum of understanding with Robotis, a company specializing in humanoid robot technology, underlining its commitment to furthering its capabilities in this domain. The collaborative efforts aim to expedite the research and commercialization of humanoid robots, showcasing LG's ambition to lead in markets that go beyond domestically engineered appliances.

  • 6-2. Launch of Digital Signage and Educational Displays

  • Complementing its venture into robotics, LG is unveiling a suite of digital signage solutions aimed at enhancing operational efficiency for businesses across various sectors. At InfoComm 2025, LG introduced the 'ProActive360' platform, which is designed to provide comprehensive management for digital signage networks. This service includes monitoring, content scheduling, and creative management, ensuring that signage displays operate at peak performance with minimal user intervention. The move reflects a growing focus on B2B solutions as LG adapts its offerings to meet the needs of a rapidly digitalizing business environment.

  • Additionally, LG is launching an AI-powered digital whiteboard equipped with advanced features like AI Summary for condensing educational materials and AI Real-Time Translation for multilingual classroom settings. This product is anticipated to debut at the ISTE 2025 expo, demonstrating LG's commitment to innovation in the education technology market. The integration of AI into educational tools is part of a broader strategy to create more immersive and interactive learning experiences, aiming to enhance both teaching and student engagement.

  • Through these initiatives, LG not only seeks to diversify its product lineup beyond smartphones but also positions itself as a key player in the fields of smart education and digital asset management.

Conclusion

  • The conclusion of LG’s smartphone endeavor represents a pivotal moment not only for the company but also for its users and the broader mobile ecosystem. As software support winds down, existing LG phone users must prioritize securing the last rounds of updates while evaluating available trade-in possibilities. With less than two weeks remaining before the support cutoff, stakeholders find themselves at a critical nexus in device longevity and security, driving demand for effective upgrade strategies. Despite LG's exit reshaping the competitive landscape, a wave of innovation is anticipated as rival manufacturers, including the likes of Google and new market entrants, position themselves to capture the void left by LG. Emerging options like the Trump family’s made-in-USA phone underscore an evolving consumer preference, one that favors localized production amidst shifting market dynamics. Simultaneously, LG’s move to reinvest in AI-driven sectors such as robotics and educational technology illustrates a robust strategy to harness their engineering prowess beyond smartphones. These sectors present promising avenues ripe for growth and innovation in the coming years.

  • Looking ahead, industry analysts emphasize the importance of monitoring secondary market trends, as users increasingly explore avenues for obtaining affordable yet secure alternatives. Factors such as competitive update policies from rival brands will be instrumental in shaping user decisions in this transition phase. Additionally, LG’s foray into B2B initiatives targeting AI solutions and digital signage solutions is poised to influence not only its own future profitability but also the industry’s trajectory as firms focus on intertwining traditional manufacturing ideals with cutting-edge technology. As the smartphone landscape undergoes significant transformations, stakeholders must remain vigilant in adapting to the reshaping dynamics—ultimately fostering resilience and continuity in the face of sweeping change.

Glossary

  • LG (LG Electronics): A South Korean multinational electronics company known for its appliances, home entertainment systems, and smartphones. As of June 19, 2025, LG is in the process of shutting down its smartphone division, with the final software updates for devices scheduled for June 30, 2025.
  • End-of-support: A term that signifies the point at which a company will no longer provide updates or support for a product. For LG users, this date is June 30, 2025, after which devices will cease to receive software updates and security patches, increasing vulnerability to cyber threats.
  • Secondhand market: A marketplace where used goods, including smartphones, are bought and sold. With LG exiting the smartphone market, the secondhand smartphone market is witnessing limited inventory and low trade-in rates among consumers, particularly in Europe.
  • Android updates: Software updates for devices running on the Android operating system, which include new features, enhancements, and security patches. LG will stop providing these updates for its smartphones after June 30, 2025.
  • Consumer behavior: The study of how individuals make decisions to spend their resources on consumption-related items. Current trends indicate that many consumers are holding onto their devices longer, affecting trade-in rates and the secondhand market.
  • Mobile ecosystem: The interconnected environment of mobile devices, including smartphones, applications, and services provided by manufacturers, developers, and telecommunications companies. LG's exit from the smartphone market alters dynamics within this ecosystem.
  • Trump phone: A new mobile venture launched by the Trump family, aimed at U.S. consumers, priced at $499. It is marketed as a made-in-USA alternative amidst LG's exit, although its impact on established brands is expected to be minimal.
  • Upgrade options: Various avenues through which consumers can obtain newer devices, including purchasing new smartphones or trading in old ones. LG users are encouraged to explore these options as the company will no longer provide support after June 30, 2025.
  • Trade-in programs: Initiatives that allow consumers to exchange their old devices for credit towards new purchases. As LG exits the smartphone market, trade-in values may be limited due to low engagement and prolonged device retention among users.
  • AI-driven robotics: A field in which artificial intelligence is integrated into robotic systems, enhancing their capabilities in various applications. LG is pivoting towards this area following the closure of its smartphone division, focusing on integrating AI in manufacturing and consumer products.

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