After a series of continuous financial losses, LG has officially announced that it is closing down its smartphone business. The decision was approved by the Korean giant’s board of directors, with the company expected to focus on other areas.
LG Will Continue to Provide Support and Software Updates for Existing Customers
With the latest decision, LG states in an official press release that by officially quitting the smartphone business, it will be able to focus on other ventures, ranging from electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, business-to-business solutions, along with platforms and services. There is still positive news for existing LG smartphone owners as the company will continue to provide software support for a limited period of time, but this will depend on which region you live in.
“Current LG phone inventory will continue to be available for sale. LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined 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’s entire smartphone arm is expected to see a complete closure by July 31. However, the technology giant states that inventory of some existing models might still be available after the aforementioned date. LG has not mentioned if software support and after-sales service will be provided to customers after July 31, but we will find out in the coming months. With the latest announcement, we can expect LG’s premium and mid-range line of smartphones to be sold at throwaway prices as well.
After all, there is little incentive to invest in an LG smartphone now that the company will no longer produce any new models. It is certainly a sad day, but looking back, LG could one day examine and investigate where it went wrong and decide to jump into this business once more with a more refined strategy. Whenever that happens, we will keep our readers updated, but for now, LG’s smartphone business is done for.
News Source: LG