LG announces it’s leaving the mobile phone business
It’s official! LG Electronics is stopping mobile phone manufacturing and sales to focus on other growth verticals like EVs, AIoT, robotics, and B2B solutions. The decision has been approved by its executive board. The winding-down process is expected to be done by July 31. Meanwhile, the company says it will be selling and supporting current inventory as well as products in the market.
“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,” LG said in a statement.
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Henceforth, LG Mobile will also be assigning its resources and expertise to the development of present and future business cum technological areas such as 6G.
Although not specified, this also puts the launch of long-teased LG Rollable in a bind. The device might not after all see the daylight. This was something already reported by Korean news outlet Donga last month. That makes LG Wing (review), the last of many fascinating smartphones designed by LG Mobile.
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For all its cutting-edge and head-turning design achievements, the LG smartphone division wasn’t doing good sales. It accounted for a mere 7.4% of revenue in Q4, 2020, and was the smallest among the 5 divisions of LG Electronics. It clocked just 2% of the global smartphone market with a trail of loss in its wake. Thus, a brand that was once the world’s 3rd largest smartphone manufacturer in H1, 2013 is having such an unfortunate end.
How does LG’s departure from the smartphone business make you feel? Tell us down in the comments. Let us know if you have used LG phones in the past or are using one in the present. We will love to know about your experience.