The rumors and speculations will finally come to an end as LG Electronics Inc. has made an official announcement. LG has recently made a statement that it is stepping away for the phone business. This means manufacturing and sales are stopping as the other South Korean tech giant will be focusing more on B2B solution, Internet of Things (IoT), and electric vehicles (EVs). The LG executives have made up their minds and have spoken: the mobile business unit is closing down.
The board of directors have approved the decision to shut down its mobile business division. This will be a strategic decision to focus its resources to other areas that are more profitable. We can expect that no new smartphones will be introduced by LG including the much-anticipated LG Rollable Phone, LG Rainbow, and the LG Q83.
LG will work more on growth areas like connected devices, smart homes, artificial intelligence, robotics, and electric vehicles. Services, platforms, and other business-to-business solutions will be given further focus in the coming months and years.
As per LG, mobile devices part of its current product lineup will still be up for sale. Software updates and customer service support will sill be provided (contrary to an old report) up to a period of time but will depend in different regions.
The mobile phone business shutdown will happen slowly. LG will still work with business partners and suppliers collaboratively all throughout the closure. Employees that will be affected in South Korea have yet to receive details about their fate but we’re assuming they will be moved to different units.
LG is determined to still use its expertise in the mobile business. It will develop technologies related to mobile that may benefit many companies and millions of people. LG said it is looking into 6G already.
The mobile operations and technologies will still be applied to future and existing products by LG. The unit is expected to be closed off by July 31.