LG has stopped producing phones! Is it good news for mobile phone service providers and repair shop owners? Let’s find out!
The industry is switching to making household appliances and other appliances that LG offers to its customers. The company officially confirmed its exit from the mobile phone business in early April 2021. However, they need some time to change performance. Mobile users loyal to the product will be able to access after-sales services for 4 years from the date of device creation. But the big question remains, how will this affect the mobile phone repair industry in general?
Impact on the Mobile Phone Industry
With the production of LG mobile phones declining, this is a good time for other companies to enter or expand the market. LG phones are still very popular, especially in Asia and Europe. We could see a new competition coming up that will replace the market that LG left behind. There are a few questions left about the company’s amazing emergence from the mobile phone manufacturing market. What will happen to the remaining parts produced by LG? Will they simply be ruined or sold cheaply by third-party mobile phone providers? Will they be available for purchase at repair shops to service customer devices?
These are some vital factors to consider.
LG has had a difficult time in the mobile industry with other companies such as Samsung and Apple leading the market for more than a decade now. The electronics company has been making phones for 20 years. But it has never been easier for them either. It does not help that LG has not been financially viable in the last few months. Earlier there were rumors that he was planning to sell all his mobile phone parts, but how much would he be able to pay for his technology or staff? It is difficult enough to sell goods at a whole new price, especially if they do not perform very well. LG has announced that the LG G Watch was their latest Android watch device. But it was not well received, and the company decided to suspend the production of its cellular segment. However, LG has not been very good at making phones in general. Therefore, we do not know what this means for them either.
The next question is: who owns all these changing devices and components?
How Will The Parts Get To The Repair Shop?
There has been comfort throughout the situation, however. LG has indicated that parts will be available in the next four years, which should see some devices being serviced beyond 2024. From the editor’s point of view, this is good news. There is a chance that they will get customers from people who may have owned the company as their device was new. Also, you will not need to do any cleaning at your POS mobile phone repair shop anytime soon. Of course, manufacturers like Apple, Google, etc. can work as suppliers of mobile phone parts or become direct customers where those can be purchased. Third-party mobile phone service providers in the USA can also take over. However, I feel that mobile companies need to play a bigger role in maintaining their product life cycle. The product should be designed to make it easier to repair someone other than the actual manufacturer. A record 53.6 million metric tons of electronic waste was produced worldwide in 2019. And most of it came from obsolete devices. So we know what kind of impact you have on the environment.
Opportunity for the Mobile Repair sector
The LG initiative is a great opportunity for the mobile repair industry to grow and play its part in reducing electricity waste. It shows that the company does not want its phones to be thrown in the trash when they are broken.
Repair stores now face the question of whether they should change their product list to include only non-perishable products, or should they buy it separately? It may not have changed much as there are still laws that protect consumers from faulty goods and manufacturers’ guarantees. LG has confirmed that its mobile phones will still receive services after being sold for four years from the date of manufacture. This means that if you have an LG smartphone and it breaks down, the company will repair or replace your phone within four years. But what about those who do not have a warranty? Will there still be LG mobile phone suppliers who have a chain of repair shops to stay alive? Repair shops will soon be able to receive parts directly from LG and / or their local distributors. If the store is a registered member of the Mobile Network Repair Association, they will be able to access all the changing parts available in South Korea, whether manufactured by LG or not.
Conclusion
LG’s exit from the mobile industry will certainly affect cell phone parts suppliers but LG’s legacy will continue to live on!
