Officially: LG’s mobile business is shutting down

Previously the LG company announced the exit from the mobile business on April 5. Now here’s the date and probably the last time writing about the LG that the company finally and officially announced what they promised before.

What is known?

Alarming signals that things were not all right with LG’s mobile business began to emanate a long time ago: sales of devices were falling and losses were growing.

Against the background of the problems, the company even tried to change the owner of the division, but nothing came of this venture. As a result, LG decided to close the production of smartphones.

Today the official made an official announcement that they are shutting down the smartphone business. The decision “will enable the company to focus on promising areas such as components for electric vehicles, smart homes, robotics, artificial intelligence, and business solutions, as well as platforms and services.”

In an official statement, LG said that already released smartphones are still available for purchase, and the company will continue to support its products “for a period of time, which will depend on the region.”

With regard to the possible reduction of staff and layoffs of employees, the company limited itself to the message “that the details related to employment will be determined at the local level.”

All procedures related to the closure of the mobile business will be completed by July 31, but some products will be available for purchase after this time.

LG’s withdrawal from the mobile market was not a revelation, it was predictable against the background of the losses that the company had incurred in this field for 5 years.

The company tried to save this line of business by reorganizing, changing managers, and experimenting with unusual devices. The goal was even to make the mobile division profitable by 2021.

LG did not elaborate, but it looks like the sliding smartphone, which was shown in a small video of the company at CES 2021, will not see the light of the day.

The company turned out to be unprepared for the tough competition that has reigned in the smartphone market over the past few years. LG’s assets began to melt and dragged the company to the bottom.

All this led to the fact that one of the oldest and most reputable phone manufacturers decided to close.

Source: LG

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