It’s official: LG has decided to close its division dedicated to the development and production of smartphones. The Korean company has decided to close its mobile division for good, after years of poor results.
The South Korean company has confirmed it through a press release, in which it specifies that LG’s board of directors has decided to make the closure of its mobile business unit definitive, as had been rumored for some time.
LG decides not to sell its mobile unit and prefers to shut it down
As of this moment, the company will no longer launch new models of smartphones on the market. However, they specify that those already produced will continue to be available for sale and that all functionalities will remain operational. The final closure of LG’s mobile business unit is scheduled for July 31, 2021.
They also indicate that support will continue to be provided to holders of their current smartphones through after-sales service.
“LG makes a strategic decision to exit the cell phone sector after several years of losses in this business. This move will allow LG to devote more resources to other growth areas, such as vehicle components, connected devices, smart homes, robotics, artificial intelligence, and B2B solutions and services.”
In the last year, the company had attempted to regain relevance in the mobile market through such innovative models as the LG Wing; As well as with others that attempted to provide a premium experience at a lower price point than its direct rivals, such as the LG Velvet. Also, the firm had demonstrated its intentions to enter new segments with models such as the LG Rollable, its first smartphone with a rollable screen.
