Stepping Away from Phone Manufacturing and Sales Enables Company
to Focus on Growth Sectors Including EVs, IoT, and B2B Solutions
LG Electronics Inc. announced that it is closing its mobile business unit. The decision was approved by its board of directors on Apr 4, 2021. I personally find it sad because I’ve always loved LG devices and also feel have played a huge role when it comes to some features improvements we enjoy from all the other phone brands.
In a press release, which is actually part of this article, they explained what they would be doing with the time they now have on their hands without the phone business
LG’s 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.
LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.
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. 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 wind-down of the mobile phone business is expected to be completed by July 31, although the inventory of some existing models may still be available after that.
Tell us what you think about this decision in the comment section below. And do you use an LG device or have used one before, let us know. Check out videos from Mrwhosetheboss and MKBHD concerning some factors that may have led to the closure.