The Report Its origins were right outside of Korea, LG is shutting down its mobile business. Losses have continued to mount and billions of dollars have been seemingly lost Agile Handsets, the electronics giant has officially rolled out the towel in its struggling phone segment. “As it moves forward, LG will continue to develop mobility-related technologies such as 6G to help it achieve its mobile skills and further strengthen competition in other business areas,” the company said in a statement.
For now, LG says its current list of phones is available for sale, and existing devices will have sales support and software updates “available over time that will vary by region.” The company is hopeful that the mobile phone will be discontinued by the end of July, although it has mentioned that some LG phones may still go on sale after that date.
Even after its CEO Promise To turn to LG’s fortunes by 2021 Velvet And Wing The devices failed to gain traction with the public. The lure (and promise) of dual-screen phones Rotatable display) Was clearly not enough to persuade customers to split with influential players Apple and Samsung. Although there are litany of preferred affordable flashships OnePlus And Shaomi It continued to have what remained of its market share.
By December, the writing for the Korean electronics giant was on the wall. Its share of the global phone market is down to a paltry 1. 1. percent, LG has announced it will Outsource Its design of more low and mid-range handsets to third parties. Just a few months ago, it tried to crack the cheap 5G phone yard with 5 400 K92.
“The departure of the LG brand from the mobile space may be frustrating to some but we are in an industry where it is critically important to pivot in the best interests of employees and shareholders,” said LG Ken Hong, head of global corporate communications. “As other favorite phone brands have shown us, this is a number game, not a competition for popularity.”
Clearly, LG wasn’t ready to give up smartphone ambitions without a fight. Last month, the Korean magazine Ilbo in Dong Even Germany said it was going to sell the burning business to Volkswagen AG and Vietnam’s Vingroup JSC, but in the end the talks failed. According to Nikkei is Asia, LG’s inability to ramp up its smartphone business was affected in part by global semiconductor storage – unlike its domestic rival Samsung, LG does not make its own smartphone chipsets, and limited supply means the company has struggled to secure adequate supply of future mobile devices. .
LG’s full statement can be found below:
LG Electronics Inc. (LG) has announced that it is closing its mobile business unit. The decision was approved by its board of directors earlier today.
Out of the incredibly competitive mobile phone sector, LG’s strategic decision will enable the company to focus on areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business solutions, platforms and services.
The current LG phone inventory will be available for sale. LG will provide periodic service support and software updates for customers of existing mobile products that will vary by region. LG will work closely with suppliers and business partners when closing the mobile phone business. Details of employment will be determined at the local level.
Going forward, LG will continue to develop mobility-related technologies such as 6G to help it gain mobile skills and further strengthen competition in other business areas. The core technologies developed during the two decades of LG’s mobile business operations will also be maintained and applied to existing and future products.
The mobile phone business storm is expected to be completed by July 31, although a list of some existing models after that may still be available. “
Chris Velazko and Richard Lolar contributed to this story.