It appears that the company can no longer cope with mounting losses. LG, the favorite smartphone brand of many people a few years ago, is now saying bye-bye to the business of making smartphones.
The news came as a shock this morning when the company announced that it is closing its doors worldwide to the manufacturing of smartphones. The people behind the name will now focus on growth areas such as electric vehicle components, connected devices, smart homes, robotics, AI, and B2B solutions.
In January, the management board said it was reviewing the direction of its smartphone business.
LG was at one time the third-largest smartphone maker in the United States for a long time. That tells you how powerful the brand must have also been in other countries of the world.
However, the company is not totally done with having something to do with smartphones, as it plans to continue selling handsets as long as the inventory lasts. It also promises to provide software support for the existing lineup of smartphones for a certain period of time, saying that the move depends on which region of the world it will be dealing with.
As for the employees connected with phone manufacturing in the company, the board said their decisions will be taken on a local basis.
It appears that the phone company had tried all it could to sustain the business but has not been able, seeing that it promised to release a rollable phone earlier this year but efforts didn’t pan out the way management wanted it.
LG is promising to keep operating on other levels, leveraging its mobile-related technologies such as 6G to help further strengthen competitiveness in other business development areas.
The good thing is that the company has vowed to retain the core technologies developed during the two decades of LG mobile business operations.