South Korea’s LG Electronics said on Monday it will be shutting down its smartphone business worldwide. According to the company, it will close its loss-making mobile phone to focus its resources in “growth areas”. Moreover, this will make it the first major smartphone brand to completely withdraw from the market. They will concentrate on electric vehicle components, connected devices, smart homes, robotics, AI and B2B solutions, and platforms and services.
Furthermore,
its’ decision to pull out will leave its 10% share in North America, where LG
stands at no.3 brand-wise. According to the statement from the firm, it will
provide software support for the existing lineup of smartphones for a certain
period of time that would vary by region. Moreover, the status of its employees
of the smartphone business will depend at the local level.
“Moving
forward, LG will continue to leverage its mobile expertise and develop
mobility-related technologies such as 6G to help further strengthen
competitiveness in other business areas. Core technologies developed during the
two decades of LG’s mobile business operations will also be retained and
applied to existing and future products”.
LG Shutting Down its Smartphone Division by July
31st
According
to the press release, the current LG smartphone line-up will be available for
purchase. Additionally, it will work with its business partners and suppliers
throughout the process of closing down the mobile business. The complete
shutdown of the mobile phone business will be completed by July 31st.
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