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Home / Business / LG will close its smartphone business in July, focusing on smart home, robotics technology

LG will close its smartphone business in July, focusing on smart home, robotics technology



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LG has tried to design different designs for its LG Wing and other mobile phones to attract buyers.

Angela Lang / CNET

On Sunday, LG Electronics was struggling in a market dominated by Apple, Samsung and growing Chinese manufacturers to become the latest traditional mobile phone manufacturer to withdraw from the “extremely competitive mobile phone field.”

The South Korean company said it will close its mobile business unit at the end of July. The company will focus on smart home products (the region is one of the largest providers) rather than smartphones, as well as electric vehicle components, robotics, artificial intelligence, business-to-business products and other connected devices.

LG’s decision to terminate its telephone business reflects the dilemma faced by many companies in the market. For a long time, Apple and Samsung have been the only companies that make substantial profits from smartphones, and sometimes they are struggling.Consumers use their mobile phones longer than before, and they are looking for cheaper models, such as Samsung’s Galaxy A series Instead of its Galaxy S flagship device.






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LG showed off a rollable phone at CES 2021




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Other traditional phone brands, such as blackberries Both Nokia and Nokia are facing their own struggles, and neither company currently exists in its original form. HMD sells Nokia-branded mobile phones, while TCL sold BlackBerry-branded phones before terminating the cooperation last year. Nokia and BlackBerry, the leaders in the QWERTY mobile phone world, failed to quickly transition to touch-screen smartphones, which is doomed to their opportunities in the mobile market. LG is also struggling to migrate to smartphones. Although consumers and critics generally like its devices, LG has not approached the marketing capabilities of Samsung or Apple’s followers.

In 2007, when the first iPhone was released, LG was the fifth largest mobile phone manufacturer after Nokia, Motorola, Samsung and Sony Ericsson. In the fourth quarter of 2020, LG ranked in the top five among the world’s largest smartphone manufacturers.Even facing Huawei U.S. sanctions prevented access to components needed to make mobile phones, Ranked fifth. Apple, Samsung and China’s Xiaomi and Oppo occupy the top four.

In the past decade, it has become increasingly difficult to attract consumers’ attention on mobile devices. LG has tried innovative designs in the past few years to attract buyers. LG Wing is equipped with two screens, One of them can be rotated. At CES in January, it mocked its idea of ​​becoming the world’s first rollable phone. The device has a display that extends upward to create a larger, more tablet-like screen. As CNET’s Roger Cheng pointed out, “Probably when the phone is in landscape mode, the bottom of the phone has a mechanism to fold and unfold the display, similar to how its rollable OLED TV works-but on a smaller scale.”

But with the demise of LG’s mobile business, this rollable phone has also ended.

LG spokesperson Ken Hong told CNET: “LG Rollable is no longer part of our future product strategy.”

LG said that it will continue to sell its current mobile phone inventory and will provide services, support and software updates to customers of existing mobile devices for a period of time, depending on the region. The company’s US operations stated that “more detailed information about software updates will be provided in the near future.”

At the same time, major US carriers said they will continue to support LG mobile phone users.

An AT&T spokesperson said in a statement that the wireless provider was “aware of LG’s decision to withdraw from the mobile business” and added: “As a commitment to our customers, we will continue to support those who use LG devices on our network. Of users to transition.”

The third-largest US operator said it plans to continue to sell through existing equipment inventory and “will work closely with LG to determine the next move.”

LG may lay off employees, although many may move to other parts of LG’s business. It has employees worldwide and produces mobile phones in China, Brazil and Vietnam. Hong said the company is considering converting its facilities to produce other products, such as televisions, but it may also go bankrupt.

The company said in a statement: “Looking forward, LG will continue to use its mobile expertise to develop mobile-related technologies such as 6G to help further enhance its competitiveness in other business areas.” “Operating LG’s mobile business. The core technology developed in the past two decades will also be retained and applied to existing and future products.”

Eli Blumenthal of CNET contributed to this report.


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