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Confirmed: LG is shutting down its mobile business unit, will focus on other growth sectors

OPPO
On its official online newsroom, South Korean tech giant LG today announced that its board of directors earlier approved the closure of its mobile business unit.
Confirmed: LG is shutting down its mobile business unit, will focus on other growth sectors
File photo: LG G6

End of an era

LG said that this "strategic decision" in the "incredibly competitive mobile phone sector" will allow the company to focus resources on other growth areas. These include electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.

The company added that its current phone inventory will continue to be available for sale and they will provide service support and software updates for 
customers of existing mobile products for a period of time which will vary by region.

LG noted that it will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business.

The shutting down of its mobile business is expected to be completed by July 31, but the inventory of some existing models may still be available after that.

Moving forward, the South Korean tech giant claimed that the company 
will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Its core technologies developed during the two decades of its mobile business will also be retained and applied to existing and future products.

To recap, earlier reports shared that LG tried to sell and save its mobile division, but negotiations failed. According to rumors, 60 percent of the staff will be moved or reassigned to other departments within the company or its partners.

This closure means that we might not see the rollable smartphone that the company teased earlier this year. LG was once one of the top mobile makers in the world behind Nokia and Samsung.

In 2019, LG has closed all its mobile phone stores in the Philippines even after denying that it'll exit the local mobile market.

Source: LG
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