LG announced the shutdown of its mobile business unit on Monday. LG said that the closure of the smartphone business would allow it to focus on areas such as electric vehicle parts, artificial intelligence, connected devices, smart homes, and business-to-business solutions.
LG also said that it will continue to sell phones in order to clear its stock. For a limited time, the company can also offer service support and software updates to customers.
The shut-down of LG’s smartphone business is expected to be completed by July 31, according to the company. It also mentioned that some of its current models’ inventory would still be available after that date.
LG’s recent high-end smartphones have struggled to survive, although its more affordable handsets have faced tough competition from Chinese rivals. LG was once considered a competitor to fellow South Korean manufacturer Samsung, but its recent high-end smartphones have struggled to compete. The company had previously stated that it hoped to generate profit in its smartphone division in 2021.
After nearly six years of losses amounting approximately $4.5 billion, the South Korean electronics conglomerate announced in January that it was considering all options for the business. The company considered a variety of options, including selling the unit. LG Electronics was in negotiations with Google, Facebook, Volkswagen, and Vietnam’s Bean Party, but none of the deals worked out.
It is still the third most popular brand in North America, but its success has dwindled in other markets. LG phones are still very common in their home country of South Korea.
According to research firm Counterpoint, it shipped 28 million phones last year, compared to 256 million for Samsung.
LG’s mobile division is the smallest of the company’s five divisions, accounting for just 7.4% of revenue.
Its global smartphone market share is currently about 2%.