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LG USA customers will flock to Samsung and Motorola handsets after its exit: report

By Anam Hamid

Published: Apr 12, 2021, 7:57 PM

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LG USA customers will flock to Samsung and Motorola handsets after its exit: report

After 23 straight loss-making quarters, LG has decided to bow out of the smartphone business. Although the company's global market share is insignificant, it was the third-largest vendor in North America last year with 10 percent of the pie, per data from analytics firm Counterpoint Research.

Samsung, which was the second-largest player in the region with 25 percent of the market, looks poised to benefit from LG's withdrawal, particularly in the US, reports Nikkei Asia.

A report released by SK Securities before LG announced its exit had forecasted that Samsung's share would grow to 30 percent this year in North America. Apple, which currently has a share of 50 percent according to stats from Counterpoint, may witness a slight decline in the region this year, according to SK.

Samsung stands to benefit from LG's departure because both use the Android operating system. Apple's iPhones are based on its iOS platform.

Counterpoint also believes that Samsung is in a better position than the Cupertino giant after LG's exit. That's because it has a more diverse product lineup. Apple, on the other hand, releases a few models each year, usually flagships.

Samsung may partially benefit from LG's exit as its products cover a wide range." -Counterpoint analyst Kang Min-soo

Motorola, Alcatel, and Google also stand to benefit from the decision

Motorola and Alcatel also have room to grow after LG's departure. Motorola was the fourth-largest player in the country last year with a market share of 5 percent, and Alcatel was fifth with 4 percent of the pie.

More than half of LG phones are priced at $150, and this could work in Motorola's and Alcatel's favor, as they target the lower price segment in the US.

Wave7 Research's Jeff Moore also believes that Motorola can benefit greatly from LG's departure. LG apparently has about a quarter of the US prepaid market and Motorola's handsets seem like possible alternatives.

. @LGUSAMobile has about 1/4 of the U.S. prepaid market, per new Wave7 Research smartphone report. Who wants it? @MotorolaUS does, Moto G Stylus replacing the Stylo LG, which has killer sales. Motorola webinars and contests. Motorola on the rise at Metro, G Play selling well. pic.twitter.com/Hqbg1LSAZy
— Jeff Moore (@wave7jeff) April 12, 2021

Google's Pixel handsets also have an opportunity here to win some market share, per Strategy Analytics.

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Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.