- LG phone business can be completely closed by July 31
- The company has been consistently incurring losses in smartphone business since 2015.
- The company will continue to provide customer service support for some time.
LG Announced on Monday that the company was shutting down its mobile business unit. LG Says that the closure of the mobile phone business unit will allow the company to focus on areas such as electric vehicle components, artificial intelligence, connected devices, smart homes, business-to-business solutions.
LG further stated that the company will continue to make phones available in the market to eliminate its stock. The company will also continue to provide service support and software updates to customers for a fixed period.
According to LG, the closure of the mobile phone business is expected to be completed by 31 July. The company said that even after this date, stock of some existing models may be available.
It is worth noting that after this formal announcement by LG, the speculation about the future of the company’s mobile phone business has stopped. According to reports, LG has already started shifting some employees from phone division to business unit.
Earlier this year, LG had said that the company would evaluate its smartphone business. The company also considered several options such as selling smartphone units. LG Electronics was in talks with several companies such as Google, Facebook, Volkswagen and Vietnam’s Bean Group, but the deal with none of them was successful.
Let me tell you that LG’s decision to shut down its smartphone business is not surprising. Because the company has been incurring losses for the second consecutive quarter from the second quarter of 2015. The company had $ 4.4 billion in the fourth quarter of last year. According to a report by Counterpoint Research, LG shipped a total of 6.5 million units in 2020 and the company’s global share stood at 2 percent in the third quarter of 2020.