LG has officially announced that it is closing down its smartphone division for good. Over the past few months, the company previously engaged in numerous talks to either sell LG Mobile to a willing buyer or close it altogether. After much speculation, the company's board of directors has now settled the matter.
Back in January, reports from South Korea hinted that LG had plans to dismantle its smartphone division after citing a lack of sales within the competitive industry. At the time, LG was reportedly considering downsizing the branch, selling it to another company, or shuttering it altogether. Then, some weeks ago, another report revealed that previous plans for a sale fell through and that the company was moving forward with plans to close the Mobile division down. In fact, LG had already canceled the development of its previously announced models.
Today, LG has confirmed that LG Mobile will be wound down over the next few months and ultimately closed by July 31. In the meantime, LG will continue to sell its current inventory and, though the division will cease operations at some point, some models might still have units available after the projected end date. Support and software updates will still be provided to users of LG Mobile products for a period of time, but for how long will vary by region.
Where Does LG Go From Here?
Though a drastic move, the shutdown is no surprise. For years, LG's smartphone division has struggled against the industry's bigger competitors like Apple and Samsung. While LG Mobile had previously tried to subsist with more creative form factors, the company's offerings, especially its more standard fare of smartphones, have rarely impacted the industry as much as those of its competitors.
In any case, LG Mobile's exit likely won't affect the industry that much. Because of the company's dwindling smartphone sales, many of LG's rivals in the industry have already overtaken the company. Although the business has a significant history in the mobile industry, its most recent legacy will be the creative and experimental smartphone form factors it produced in an attempt to regain a foothold in the market.
Now that the company will no longer be preoccupied with selling smartphones, LG says it will be focusing on "mobility-related technologies," including 6G connectivity. It can still positively affect the industry behind the scenes without designing and selling smartphones themselves. The company is still planning to apply its mobile technologies in other areas and it still enjoys a strong position in the smart TV industry.
Source: LG