LG, the prominent South Korean tech giant, said in a statement that its board of directors approved of its decision of closing down production for mobile phones indefinitely. Presently LG would be focusing its empire in “growth areas” such as Electric vehicle components, connected devices, smart homes, robotics, and AI and B2B solutions and platforms and services.
- LG, which sustained a NO.3 spot in the smartphone market in the US for a long time said it would continue to sell handsets until the stock last and would provide software support for the current lineup of smartphones for a certain span of time.
- A spokesperson of LG said, “ Moving forward, LG will continue to grip its mobile expertise and develop mobility–related technologies such as 6G to help further stimulate competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobiles business operations will also be preserved and applied to existing and future products”.
- For several years, the poor monetary preformation of LG smartphones had covered the news. Like many other Android companies, LG too struggled to turn the tables in its favor by focusing on mid-range and high-end smartphones, the only two-sector that had increasingly become a battleground due to the rise of Chinese phone makers. But all efforts to keep up the business to stay afloat failed drastically.
- Neil Shah, partner at research firm Counterpoint said, “ LG was too much reliant on two markets: Korea and North America. One thing that has helped LG stay afloat for so many years is its vertical integration. They are a “mini-Samsung”.