South Korea’s LG Electronics said on Monday it will be shutting down its smartphone business worldwide. According to the company, it will close its loss-making mobile phone to focus its resources in “growth areas”. Moreover, this will make it the first major smartphone brand to completely withdraw from the market. They will concentrate on electric vehicle components, connected devices, smart homes, robotics, AI and B2B solutions, and platforms and services.
Furthermore, its’ decision to pull out will leave its 10% share in North America, where LG stands at no.3 brand-wise. According to the statement from the firm, it will provide software support for the existing lineup of smartphones for a certain period of time that would vary by region. Moreover, the status of its employees of the smartphone business will depend at the local level.
“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”.statement
Earlier, there were reports that LG was looking to sell its smartphone business. However, it was also in rumors that it will launch its rollable smartphone this year. But we also know that they have nearly six years of losses totaling $4.5 billion (roughly Rs. 33,010 crores). So, the decision to back out will help them to re-focus on its growth areas.
LG Shutting Down its Smartphone Division by July 31st
According to the press release, the current LG smartphone line-up will be available for purchase. Additionally, it will work with its business partners and suppliers throughout the process of closing down the mobile business. The complete shutdown of the mobile phone business will be completed by July 31st.
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