After five grueling years of financial losses and uncertainty about the future of its mobile handsets, LG Electronics today announced its intention to shut down its smartphone division.
In a press release, LG says the decision to shut down its smartphone business will allow it to focus on other sectors such as artificial intelligence, home computing, and business-to-business solutions.
LG's strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.
Despite its hardships, LG had multiple hits in the "incredibly competitive" market, including teasing the world's first rollable smartphone. For its devices still in the hands of customers around the world, LG says it will continue to provide user support and will sell its phones until the current stock runs out.
Current LG phone inventory will continue to be available for sale. LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.
In March, LG was considering exiting the smartphone industry, although, at the time, rumors suggested the company was aiming to sell the business instead of a complete shutdown. However, the lack of significant growth and mainstream adoption in recent years meant it was unable to find a potential buyer.
Despite the shutdown, LG says it will retain some of the core advancements that its smartphone business has made over the years, including research and development in 6G and connectivity to be applied to existing and future products.
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.
While the shutdown was announced today, LG says it expects its mobile division to completely cease by July 31.
