Its decision to pull out will leave its 10% share in North America, where it is the number 3 brand, to be gobbled up by smartphone titans Apple Inc and Samsung Electronics.
But later, its flagship models suffered from both software and hardware mishaps which combined with slower software updates saw the brand steadily slip in favor. Analysts have also criticized the company for lack of expertise in marketing compared to Chinese rivals. "In South America, Samsung and Chinese companies such as Oppo, Vivo, and Xiaomi are expected to benefit in the low to mid-end segment," said Park Sung-soon, an analyst at Cape Investment & Securities.
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