LG announced that it will be closing its mobile business unit. This decision was made to let the company focus on areas like electric vehicle components, AI, connected devices, smart homes, business-to-business solutions.
LG said it will continue to sell its phones in order to clear its inventory. They will also be offering service support and software updates for a certain time for customers.
The company said that the mobile phone business is most likely to end by 31st July. A few of the existing models might be accessible even after that date.
“Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products,” the company said in a post.
Reports say that LG has already started moving a couple of employees from the phone sector to the business unit.
LG’s exit is not surprising as a lot of smartphone businesses have gone through losses since the second quarter of 2015 and have also been that way for 23 straight quarters. The company might have brought in up to 5 trillion won ($4.4 billion) as of the fourth quarter last year. LG’s smartphone shipments were only 6.5 million units, and its global share stood at only 2% in Q3 2020, Counterpoint Research said.
Image by: LG