Life’s Good. LG. Life’s Good (electronics company, Japan, Asia) has decided to shut down its smartphone business. Looks like life ain’t good!
For the past few years, LG has made some of the best android devices like the LG G Series, LG V Series, LG Velvet, LG W Series, and many more amazing phones. There was a time when they were consumers’ favorite smartphone brand. But now LG has officially confirmed that they will shut down its smartphone business worldwide. However, the company will continue providing software updates and support to existing LG mobile users.
Earlier today, the South Korean manufacturer posted an official statement stating the same. The company’s board of directors came to this decision as the mobile phone division had been incurring severe losses for several years in a row. LG’s smartphone business didn’t take off and had cost the company nearly USD 4.5 billion in revenue. LG will now focus its resources on other growing areas.
LG’s full statement can be found below:
“LG Electronics Inc. (LG) announced that it is closing its mobile business unit. The decision was approved by its board of directors earlier today.
LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.
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.
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.”
Phones constituted 8.2 percent of LG sales last year and there will be a short-term loss of revenue, but the company expects the closure to be financially favorable in the long run. It will strengthen its car parts business and continue to develop mobile technologies such as sixth-generation networking and cameras, it said.
Its decision to pull out will leave its 10-percent share in North America, where it is the third-largest brand, to be gobbled up by Samsung Electronics and Apple Inc with its domestic rival expected to have the edge.
“In the United States, LG has targeted mid-priced – if not ultra-low – models and that means Samsung, which has more mid-priced product lines than Apple, will be better able to attract LG users,” said Ko Eui-Young, an analyst at Hi Investment & Securities.
LG’s smartphone division has logged nearly six years of losses some $4.5bn.
LG was the first OEM to introduce an ultra-wide-angle camera on a mobile phone (LG G5) and one of the few OEMs that catered to audio enthusiasts with features like Quad DAC and powerful stereo speakers. During its journey, LG also teamed up with Google to produce some of the most iconic smartphones of our time, such as the Nexus 4, Nexus 5, and Nexus 5X. LG also made Google’s Pixel 2 XL.
Rest in peace LG smartphones! You will always remain in our hearts!
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