LG May Pull Out of the Smartphone Business, Gaurav Dayal, Partner, Lakshmikumaran & Sridharan Attorneys Shares an Insight
With immense competition from Chinese mobile manufacturers, LG has not been able to reclaim its lost market share in India. Despite its recent stance of looking to tap into the growing anti-Chinese sentiments and manufacture affordable India specific mobile phones under the PLI scheme, LG seems to have not actioned it.
Given the low market share that LG had, the impact of LG pulling out of the smartphone business should not be substantial. Moreover, since LG did not have a dedicated factory for manufacturing mobiles in India, disruption in the labour market is also expected to be minimal. We have seen Nokia, Blackberry and other brands come back to India through a licensing route and LG may also go that way in case it indeed pulls out of the smartphone business.