- LG has exited the smartphone business worldwide
- The South Korean brand had incurred six years of consistent losses
- It’s unlikely that the company’s teased rollable phone will ever hit the market
LG is shutting down its mobile business unit, the South Korean brand officially announced today. The company said in a statement that it is moving away from phone manufacturing and sales to focus on growing sectors like EVs, IoT and B2B solutions.
According to LG, the shutdown of the mobile phone business is expected to be completed by July 31st this year. The company suffered continuous losses for the last five years. The South Korean brand will clear its current inventory but won’t produce any more phones.
LG withdraws from smartphone business
Notably, LG is the first major electronics company to completely exit from the smartphone market worldwide. In the last six years, LG’s mobile division clocked total losses worth $4.5 billion. LG once competed against the likes of Samsung and Apple in the smartphone market. The competition grew stiffer with the rise of Chinese phone makers like Xiaomi, Vivo, OnePlus and more. LG’s G8x ThinQ and the LG Wing failed to make a mark in the market.
In a statement, LG added that it will sell its existing phones as well as provide service support and software updates for a period of time depending on the market region. LG’s exit from the smartphone market also means that the brand’s rollable phone won’t see the light of day. It was supposed to launch this year.
Reports of LG shutting down its mobile unit have been around for a while now. The brand said that it will continue developing mobile-related technology including 6G. It will focus its efforts on electrical vehicle components, smart homes, connected devices robotics, artificial intelligence etc, so we can expect these devices to be launched in the future.