LG announced on Monday that it would close its loss-making cell phone market globally in order to concentrate its money on “growth areas” such as electric car parts, embedded electronics, smart homes, robots, AI and B2B solutions, platforms, and services. The decision was accepted today by the South Korean company’s board of directors, according to a statement. The decision is unsurprising given the company’s January announcement that it was evaluating the course of its smartphone market.
LG, which has long held the No. 3 positions in the U.S. smartphone industry, said it will continue to sell handsets until inventory runs out, and will offer software support for its current smartphone portfolio for a duration of time which might differ by country. The position of the firm’s mobile sector workers will be determined locally, according to the company. LG’s mobile company was reported to be for sale in January. The company has announced that a rollable phone will be released this year in the same month. Both attempts to hold the organization afloat, though, seem to have declined. “Going forward, LG will continue to draw on its smartphone experience and expand mobility-related innovations like 6G to further improve competition in other fields. “Core technology built over the course of LG’s two decades in the mobile market will be maintained and added to current and future products,” the company said in a release For many years, the mediocre financial success of LG’s mobile market has been public knowledge.
LG, like countless other Android handset manufacturers, has failed to make a comeback. LG concentrated on mid-range and high-end devices, two sections of the industry that have turned highly competitive in the last decade as a result of the emergence of Chinese phone makers such as Huawei, Xiaomi, OnePlus, Oppo, and Vivo, which introduce better value-for-money devices every few months. To generate profits, many phone makers now rely heavily on software services such as mobile payments. LG’s range of offerings has stayed slim over the years, despite the fact that it introduced a mobile payments program in 2017, two years after Samsung launched Samsung Pay.