Last week, local reports from South Korea claimed that LG was indeed shutting down its smartphone business after buyout negotiations with several interested companies fell through. At the time, LG claimed that “every possibility is still on the table” but that changed today, with LG making the decision official.
In a statement released today, LG confirmed that it is exiting the smartphone business and will refocus its resources on other growing areas, like AI, Smart Home, electric vehicle components, robotics and Business-to-Business solutions.
“LG Electronics Inc. (LG) announced that it is closing its mobile business unit. The decision was approved by its board of directors earlier today”, the statement reads. “LG’s strategic decision to exit the incredibly competitive mobile phone sector 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.”
LG confirms that its current inventory of smartphones will continue to be available for sale and LG will provide service support and software updates for existing mobile products. However, just how long this support is offered for will vary by region.
LG expects its mobile business to finish winding down by the 31st of July. While the company won’t be making smartphones anymore, LG will continue to work on mobile technologies like 5G and 6G to strengthen competitiveness in other business areas. Exactly what is going to happen to employees of LG’s mobile unit remains to be seen.
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KitGuru Says: That settles it, LG will no longer be making smartphones. What do you all think of the decision to shut things down?