LG becomes first major brand to exit smartphone market
LG Electronics has announced that it is closing its mobile business unit. The decision has already been approved by its board of directors.
With the decision to exit the mobile phone sector, LG will be 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, a press release reads. LG says it will provide service support and software updates for customers of existing mobile products for a period of time, which however will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. The company says that details related to employment will be determined at the local level. Moving forward, LG says it 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. The wind down of the mobile phone business is expected to be completed by July 31.