LG confirms it is shutting down its mobile phone business

After several rumours, LG today confirmed that it is closing its mobile phone business unit after it was approved by its board of directors. The company said that its strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.

An Earlier report said that during the discussions to revive the smartphone business, the company was in talks to sell the division to Vingroup of Vietnam and Volkswagen of Germany, but the negotiations fell through and that avenue closed. The mobile division of the company has consistently been reporting losses in the last 5 years, amounting to nearly 5 trillion won (Approx. $4.5 billion).

LG said that it will continue to sell the existing inventory but won’t produce new phones. LG confirmed that it will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. The company said that it will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business.

Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. LG added that core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.

The complete shut down of LG mobile phone business is expected to be completed by July 31, although inventory of some existing models may still be available after that, said LG.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram