Why Samsung is the big winner of LG’s departure from the smartphone market?

Why Samsung is the big winner of LG’s departure from the smartphone market?

LG officially gave up smartphones in 2021. A year later, we learn that Samsung is the big winner from the departure of its great South Korean rival. An observation that applies to the United States where the outsiders are still struggling to convince.

In France, it has been a few years since LG put aside its ambitions in the smartphone market. Faced with strong competition, the smartphone manufacturer officially preferred to throw in the towel last year. Far from being a top seller, however, LG’s departure has not gone unnoticed due to the status of the brand. The firm has also tried everything to exist, without ever managing to contain the progress of Chinese manufacturers. However, it is not the Chinese brands that seem to benefit from LG’s departure from the smartphone sector.

More than in France, this departure left a certain void in the American market. However, the site The Verge explains that it is not outsiders like OnePlus or Xiaomi who benefit from it, but the essential Samsung. Already number two in the United States, the brand behind the Galaxy S has reaped the rewards of its strategy based on the A range. These models focused on the mid-range have helped Samsung to grab market share, such as the says these numbers from Counterpoint Research.

We learn that they contributed to an 11% year-on-year sales growth in the fourth quarter of 2021. The Galaxy A12 even stands out as the Android device sold across the Atlantic in 2021; while a model like the Galaxy A32 5G has had some success with operators.

The Galaxy A line helps Samsung in the US

Samsung’s success also confirms that the American market is concentrated around two brands. Unlike Europe where Chinese brands are progressing rapidly, the United States still and always sees Apple and Samsung clash. ” We [les gens qui achètent des smartphones] we have one less option when it comes to choosing a new phone, and one less reason to stay away from Apple and Samsung, the dominant brands in the US smartphone market”, says Allison Johnson of The Verge. The South Korean giant benefits from its solid experience in a market it knows well and in which it maintains good relations with operators. “Without them, it is very difficult to sell smartphones in the United States”explain our colleagues.

The decision to offer ever more efficient Galaxy A obviously helped the brand. The latter is also increasing its efforts to become a reference in terms of Android updates. Elements that hit the mark with American consumers while Chinese companies arouse a certain mistrust in the United States.

And the other brands?

This may also explain the great progress of Motorola. The American brand, owned by Chinese Lenovo, recently climbed onto the sales podium behind Apple and Samsung. Prior to LG’s departure, Motorola held around 5% market share in the US and this figure jumped to around 10% last year and even reached 12% in the fourth quarter of 2021. The firm is benefiting in particular from the success of a model called Moto G Pure (not available in France); and being one of the few manufacturers to offer an affordable model with a stylus.

As for Chinese manufacturers, OnePlus is doing well with accessible models. Nevertheless, the brand that has approached OPPO has not completely lived up to expectations. We can also be surprised at the lack of enthusiasm around Google, a recognizable brand that does not manage to shake up the Apple-Samsung duopoly with its Pixels.

Why is LG leaving a void in the US?

If Samsung and Motorola seem able to fill the void left by LG, something is still missing to make people forget the firm behind the Wing. “The price of LG phones was always equivalent to that of Samsung. Then they very quickly dropped in price because they weren’t as good. It opened up a kind of market: a phone almost as good as Samsung for a lot less money… and [maintenant] this phone is not available »says analyst Avi Greengart.

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