LG Says It's Pulling Out of the Smartphone Business
LG's time in the smartphone business is officially coming to an end. After months of speculation, the South Korean electronics giant announced on Monday, April 5, it'll be shutting down that side of its business worldwide.
In the statement, the company explained that they'll instead focus their resources on "growth areas" such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, platforms, and services.
LG will certainly still have its hands full, just no longer with smartphones. Although, the company did also state it would continue to sell current LG phone inventory, as well as offer service support and software updates for current LG phone users "for a period of time which will vary by region."
That last statement is a little vague, but there'll surely be a more specific date on LG's website in due course.
Details of LG's mobile sector's closure
As for LG workers employed in its smartphone side of the business, the details of their employment will be looked at on a local level. And suppliers and business partners of LG's phones will continue to work with LG during its closure of this side of the business.
The company also mentioned it'll keep a hand in the mobile pot as it will use its two-decade-long expertise in the mobile business "to develop mobile-related technologies such as 6G."
It'll also apply core technologies it gained from working in the mobile sector to good use to existing and future products, not necessarily related to smartphones.
There is one date that's been provided, and that's July 31, which is when LG's phone business is expected to shut down. But not to worry, inventory of existing models may still be available past that date.
LG's decision comes as no real surprise, as TechCrunch points out that its smartphone business has performed poorly financially for several years. Given the competitiveness of the smartphone industry over the last decade, it's been tricky for certain companies, like LG, to stay afloat.
However sad it is to see LG phones go out the window, we've no doubt that the company's other tech will make up for it.