LG smartphone users will no longer get to lay their hands on new phones as the South Korean company announced shutting down its loss-making mobile communications unit. In a statement, the company announced shutting production and sales of mobile phone products on July 31 due to intensified competition and mounting losses, the company said, as per news agency Bloomberg.
Here’s the reason behind closure of mobile business
LG, known as one of the pioneers of the Android operating system, in partnership with Alphabet Inc.’s Google on the Nexus smartphone and also launched some of the best camera and display technologies in the category’s early days.
The decision wasn’t a total surprise as there were reports hinting that the South Korean company is planning to exit the phone business. The announcement comes after the board of directors gave a go ahead to the “strategic decision.” Also Read: Adani Buys Another 25% Stake In Krishnapatnam Port For Rs 2800 Crore, Taking The EV To Rs 13,675 Crore
The one time pioneer LG Electronic is trying to streamline operations and keep the focus on future projects such as electric vehicle components. Earlier in January, the company hinted at reviewing the direction of its smartphone business even as it promised to sell a rollable phone this year.
The company has been focusing on its vehicle components business and partnered with Magna International Inc. for a joint venture to make key parts for EVs. The company stated it will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G in order to further strengthen competitiveness in other business areas.
Hence, the core technologies developed during the two decades of LG’s mobile business operations will be retained and implemented to existing and future products.
Will existing phone in the markets continue to be sold?
The good news for LG patrons are that its existing phones will continue to sell, as per Gizmochina. It will continue to work with suppliers and business partners for the closure of the mobile phone division. Although no new phones will be manufactured, it will continue to ofer support and software updates to existing customers for a certain “period of time”. This support will again vary from region to region.
For those who still use LG mobiles, they need not worry much right now because their phones will be supported officially for at least some time from now. LG will be providing technical support and service to these mobile phones and the ones that are on sale.
Moreover, the company wants to focus on other areas like electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.
The first-ever modular smartphone LG G5 was launched in 2016, and LG Wing with the rotatable display was out last year. All these notable launches from LG will be remembered in the history of phones. The LG Rollable which was expected to be launched in 2021 seems to be a distant dream with the annoucement of the mobile business being shut.