For a few months there had been rumors floating around about LG downsizing or dismantling its mobile division. Now it appears those rumors were true. LG Electronics is exiting the smartphone business after losing $4.5 billion USD over the past five years. The decision was approved by its board of directors today. To some this was no surprise, LG had been struggling to remain relevant in a mobile world dominated by Apple and Samsung. Their market share stood at barely 2% at the end of 2020.
What can existing customer expect from LG exiting the smartphone business?
The shutdown will take a few months and is expected to be completed by July 31. There appears to be substantial inventory still in existence which will probably be sold at discounted prices. Existing customers will continue to receive support and updates, however the duration for these services will vary by region.
What is next for LG?
LG will focus on other efforts such as artificial intelligence, home computing, and business-to-business solutions.
Stepping Away from Phone Manufacturing and Sales Enables Companyto Focus on Growth Sectors Including EVs, IoT and B2B Solutions
Check out the official press release for more information.
