LG Electronics is Quitting the Smartphone Business

LG Electronics’ smartphone has come to an end, as the company confirmed yesterday. And the final decision was approved by the board of directors. Their decision on exiting the competitive mobile phone sector will shift its focus and resources in growth areas such as “ electric vehicle components, IoT devices, robotics, AI  and platforms and services”, LG said in a Public articulation.

Available smartphone products in LG’s inventories will remain on sale and serve as support and software updates for customers of existing mobile products for a period of time which will vary by region. The company hasn’t said anything about possible layoffs except that “details related to employment will be determined at the local level.” LG says it expects to have completed the business’ closure by the end of July this year, but product inventory may be available after July 31st.

It has been rumored for a while, as they bear huge losses for over the past five years. Considering Samsung manufacturer as a rival, LG’s recently launched smartphone has struggled to compete, while its more reasonable handsets have confronted stiff competition from Chinese rivals.

Further LG will focus on the research and development part in the field of telecommunications networks such as 6G projects, and focus on strengthening its competitiveness in other fields too. The company has confirmed that all core LG technologies developed over the last 20 years will be retained and incorporated into the brand’s future products.