LG has given up on its loss-making mobile business after facing a continuous struggle in maintaining its position on the global smartphone market share chart. The move, approved by its board of directors, was rumored since the start of this year after the company stated that it’s been reviewing the direction of its phone business, however, rumors also said that LG may sell its mobile unit.
The South Korean electronics giant says that the decision to end its mobile business will enable it 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.”
If you are an existing owner of one of LG’s smartphones then you don’t have to worry just now as the company will keep the support running for a period of time which will vary by region. While we are on it, LG confirmed that it will keep rolling out the Android 11 update to eligible devices and it also has plans to roll out Android 12 to select devices. The rollout will depend on Google’s distribution schedule and will vary by region.
Earlier this year, LG announced that it will launch the much-teased rollable smartphone later this year which the company showcased at this year’s virtual CES. Looks like if in the future we see a launch of a rollable smartphone, it won’t be from LG. Soon after the news came in, photos of the rollable smartphone and LG V70 surfaced online which the company was planning to launch this year.
LG manufactured both mid-range and high-end smartphones and faced tough competition from its rivals such as Apple, Google, Samsung, and Huawei and since the rise of Chinese smartphone makers offering better value-for-money models and refreshing their lineup every few months, the company struggled to keep up with the fast-growing market and maintain its market share. Despite all the efforts the company made to turn the growth curve in its favor and keep the business up and running, it failed and hence, in the end, decided to shut the business down.
LG has not revealed anything related to possible layoffs except that “details related to employment will be determined at the local level.” The company will work collaboratively with its suppliers and business partners throughout the closure of the mobile phone business which it expects to be completed by the end of July.
If you were looking to buy an LG phone then you still can as the company has decided to keep selling some of its existing phone models until the inventory lasts.
“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.”
