LG recently announced that it would conclude its loss-making phone business globally since it seems to pay attention to its resources in “growth areas”. It includes connected devices, electric vehicle components, robotics, smart homes, B2B and AI solutions, and services and platforms. This South Korean organization mentioned in a statement, its board of managers supported the verdict today.
The unsurprising step followed the firm’s report from January when it stated it was examining its smartphone business administration. LG, which managed the number 3 position in the mobile phone marketplace in the United States for an extended period, mentioned it would sell handsets till the inventory continues and will give software support for the current smartphones’ lineup for a specific time that would differ by region.
LG said that its employees’ status of phone business would be decided at the local level. In 2021’s beginning, reports appeared, stating LG was seeking to sell its mobile phone business. In a similar month, the organization said it would release a rollable smartphone this year. However, it seems all the works to keep the company stays afloat failed.
It, in a statement, said, “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 poor economic performance of LG’s mobile phones has been public information for numerous years. Like innumerable other Android smartphone merchants, LG has strived to turn things around. The company concentrated on high-end and mid-range smartphones, two sections of the marketplace that have become competing in the previous decade because of Chinese phone makers’ rise.
These phones include Xiaomi, Huawei, Oppo, Vivo, and OnePlus releasing better value-for-money models each month. Numerous phone markers now depend massively on software solutions like mobile payments to earn money. While LG released a mobile payments solution in 2017, 2 years after Samsung started Samsung Pay, the LG services portfolio continued thin during the years.