LG Quits Smartphone Business
The company announced today to shut down its smartphone business worldwide.
LG confirmed quitting its smartphone business unit to strategically change its focus towards growth areas like EV components, robotics, AI and B2B solutions.
While, the existing stock will still be available for purchase, and the company will also provide service support and software updates. However, it will only “for a period of time which will vary by region”. The complete closure of the mobile business unit of the company is expected to complete by 31st of July. However, the statement by LG says that the inventory of existing models will stay available.
Additionally, the South Korean multinational electronics company does not say much about the layoff of their employees. However, just mentioned that the “details related to employment will be determined at the local level“.
LG said in their statement this 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.”
The reason behind this step is the highly competitive smartphone market. And LG faced tough competition with other companies like Samsung, Xiaomi and more.
Among the various rumors about LG’s exit, Reuters reports that LG’s smartphone business and models were going through huge loses for past 5 years. Although it hoped the profit would boom up again for its smartphone division this year. Even there are reports of LG trying to sell its smartphone division to Vingroup of Vietnam.
LG was known for various innovative smartphones
After two-decades of its smartphone business, LG calls it quits. However, it is being known for launching some remarkable innovations, that upgraded the smartphone expectation. Amongst, its various innovations, LG was the first company to launch smartphone with ultra-wide angle cameras.
The South Korean electronics giant, also mark the first one to introduce Quad HD displays for high-resolution screen. Also, it started the trend of two selfie cameras and the LG Wing, which is phone with two displays.
However, even after such innovation in smartphone models, the LG’s phones faced backlash. Due to several issues reported in its software and hardware, in past three years.
But it looks LG has decided to move forward and shift its focus to growth areas as well as business two business solutions. The next move of LG is to leverage its expertise and development technologies in developing 6G. Thus, to “help further strengthen competitiveness in other business areas”.
Additionally, the company plans to apply their core technologies and mobile business operations to further extend them in their future products.