LG Electronics has announced that it is closing its mobile business unit, a decision that was approved by firm’s board of directors on April 5, 2021.
LG’s strategic decision to exit the incredibly competitive mobile phone sector is meant to 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.
(TOP: The LG V50vThinQ with Dual screen).
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,” noted LG Electronics in a statement.
The shutting down of the LG mobile phone business unit is expected to be completed by July 31, 2021 although inventory of some existing models may still be available after that.