The rumors were true after all. South Korean electronics giant LG has today officially announced that it is shutting down its phone business. After failing to find a buyer, the company is making an exit from the smartphone market. However, the decision is not surprising at all, as the company’s phone business has failed to turn a profit for a while now, and continued to bleed money despite LG trying to innovate with products such as the swiveling screen LG Wing and the upcoming LG Rollable. Following its phone business goodbye, the company will internally relocate the employees from its smartphone division to other departments.
“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.”
LG says that its existing portfolio of products will continue to be available from authorized partners until stocks last. The company says it will provide ‘software updates for customers of existing mobile products for a period of time’ on a regional basis. But given the abysmal state of LG’s Android update rollout, I am not too hopeful about that promise.
Shutdown of the phone business is expected to be completed by July 31, although the inventory of some existing models may still be available after that. Following its exit from the smartphone industry, LG will turn its focus towards areas such as 6G, electric vehicles, connected devices, smart homes, robotics, AI, and other relevant business solutions – both products and services.
LG was once among the top brands making high-end Android phones. The company brought the first flexible curved display phone – the LG G Flex and its successor – to the market. It was also among the early adopters of the dual rear camera trend, popularizing the idea of a wide + ultrawide camera setup on phones, and was among the last Android makers to offer features as DAC and 3.5mm headphone jack. And oh, the dual-screen form factor was also in its arsenal. The brand tried to make a comeback with the LG Velvet and Wing, but it was too little, too late.