LG’s report is correct, LG is shutting down its mobile business. As losses continue to increase, and billions of dollars seem to be wasted on quirky phones, the electronics giant has officially left its troubled telephone department behind the towel. The company said in a statement: “Looking forward, LG will continue to use its mobile expertise and develop mobile-related technologies, such as 6G, to help further enhance its competitiveness in other business areas.”
LG said that at present, its current mobile phone inventory can still be sold, and existing equipment will continue to receive after-sales support and software updates, the specific time will vary from region to region. The company expects to complete the liquidation of its mobile business by the end of July, although it pointed out that some LG mobile phones may continue to be sold after this date.
Although its CEO promised to reverse the fate by 2021
By December, the deal had been hanging on the wall of the South Korean electronics giant. With its share of the global mobile phone market dropping to only 1.7%, LG announced that it will outsource the design of more low- and mid-range mobile phones to third parties. Just a few months ago, it tried to break into the field of cheap 5G mobile phones with the $400 K92.
Ken Hong, head of LG’s global corporate communications, told Engadget: “The departure of the LG brand from the mobile sector may disappoint some people, but we are in an industry where it’s vital to make adjustments and make adjustments that are consistent with employees and shareholders. The best interest thing.” “As other beloved phone brands have shown before us, this is a numbers game, not a popularity contest.”
Obviously, LG is not prepared to give up its smart phone ambitions with unremitting efforts.Last month, Korean newspapers Dong-A Ilbo According to reports, even in the negotiation, the head business was sold to Volkswagen AG in Germany and Vingroup JSC in Vietnam, but the discussions ended in failure.according to Nikkei AsiaLG’s inability to improve its smartphone business is at least partially affected by global semiconductor storage-unlike its domestic rival Samsung, LG does not produce its own smartphone chipsets, and the limited supply means that the company has been working hard to ensure sufficient Supply silicon for future mobile devices.
LG’s full statement can be found below:
“LG Electronics (LG) announced that it will close its mobile business unit. This decision was approved by its board of directors earlier today.
LG’s strategic decision to exit the highly competitive mobile phone industry will enable the company to focus its resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, and platforms and services.
The current LG mobile phone inventory will continue to be sold. LG will provide service support and software updates to customers of existing mobile products within a period of time, and the time will vary from region to region. LG will cooperate with suppliers and business partners during the end of the entire mobile phone business. Details related to employment will be determined at the local level.
Looking ahead, LG will continue to use its mobile expertise and develop mobility-related technologies, such as 6G, to help further enhance its competitiveness in other business areas. The core technology developed by LG in the two decades of mobile business operations will also be retained and applied to existing and future products.
The mobile phone business is expected to complete the transaction before July 31, although there are still some existing models in stock thereafter. “
Chris Velazco and Richard Lawler contributed to this story.