SEOUL – South Korean electronics giant, LG Electronics Inc. (LG), announced on Monday that it is closing its loss-making mobile business unit, becoming the first brand to quit the incredibly competitive sector.
The innovator of various technologies including ultra-wide angle cameras revealed in January that it was considering all options for the division as it registered around $4.5 billion in losses in six years.Â
A statement issued by the firm said, “The wind down of the mobile phone business is expected to be completed by July 31 although inventory of some existing models may still be available after that”.
LG has announced that if 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.
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.
Explaining reasons, it said that the 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.
