South Korean corporation LG Electronics Inc. (LG) announced the closure of its mobile business unit in a decision approved by the board of directors.
LG said in a statement that it will be focusing its efforts on developing and expanding its efforts on electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.
LG used to be one of the innovators in the smartphone industry. It is one of the first to introduce a minimized-bezel FullVision Display at a mid-range price point in 2017.
However, it said that the mobile phone sector is “incredibly competitive.” New brands from China — Xiaomi and vivo, for example — are dominating the market these days. Apple and Samsung have a stable fan base that they are able to keep their posts in the top brands worldwide.
LG assured its customers that it will provide service support and software updates of existing mobile products for a period of time which will vary by region. The company also said that it will continue to work collaboratively with suppliers and business partners throughout the closure of the mobile phone business.
But LG will keep using its mobile technology to develop mobility-related technologies such as 6G which will be used to “”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.
The wind-down of the mobile phone business is expected to be completed by July 31 although the inventory of some existing models may still be available after that.