Electronics giant LG plans posted a statement today that it stop making smartphones after struggling for years to compete in a market where it was once a leading player.
The South Korean conglomerate will shut down its mobile phone business and exit the “incredibly competitive” industry by July 31. According to a statement posted online, the decision was approved by its board of directors earlier today. The wind-down of the mobile phone business is expected to be completed by July 31 although the inventory of some existing models may still be available after that.
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, stated the press statement.
LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.
Moving forward, LG 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 company was the world’s third-largest smartphone manufacturer behind Samsung and Apple at the height of its success in 2013. But its leading models suffered from hardware and software struggles in more recent years.