LG exits the smartphone business, as confirmed by the company today. The decision “will allow the company to focus its resources on growth areas such as components for electric vehicles, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services. “LG has assured in a statement.
Existing phones will continue to be sold, and LG says it will continue to support its products “for a period of time that will vary by region.” The company has said nothing about possible layoffs, except that “details related to employment will be determined locally.” LG expects to have completed the closing of the business by the end of July this year.
The move has been rumored for several months, following the division’s huge losses in the past five years. Once considered a rival to South Korean manufacturer Samsung, LG’s latest high-end smartphones have struggled to compete, while its more affordable phones have faced stiff competition from their Chinese rivals. The company had previously said that it expected its smartphone division to be profitable in 2021.
Today’s news means LG’s long-announced rollable phone is unlikely to see the light of day.. The last time the company showed the device was at this year’s virtual CES, when the company insisted that the device was real and that it would be released later this year.
An attempt to sell the division would have failed
Rumors that LG has been considering ditching smartphones have been around since at least the beginning of this year.. Although a company spokesperson dismissed an earlier report about the company’s possible exit from the smartphone business as “completely false and unsubstantiated,” an LG official later confirmed to The Korea Herald that the company had to make “a cold judgment” on the division. Possible measures could include “the sale, recall and downsizing of the smartphone business,” the official said at the time.
In March, the company was reported to have tried to find a buyer for its smartphone business, but that the talks had stalled and that it could close the division. Korean outlet DongA claimed that the company had stopped developing its upcoming roll-up screen phones and had shelved its smartphones scheduled for the first half of this year.
As it lost share to rivals, LG launched a number of eye-catching devices with unusual shapes. For example, him LG Wing, whose main screen would rotate to show a smaller secondary screen, or your recent dual-screen devices. LG also tried a modular smartphone with the LG G5, but dropped the initiative a year later.
Unfortunately for LG, none of these features were useful enough to turn phones into hits, and meanwhile the company’s more traditional phones lagged behind their rivals in basic areas as the performance of the camera.
LG joins a long list of high-profile device makers who have ditched smartphones over the years, although many of the brand names have remained on third-party-made devices. Nokia’s consumer brand is still present on phones manufactured by HMD, while the Blackberry brand was initially used by TCL. And it will return this year in a device made by OnwardMobility. Is also HTC, which continues to sell some weird phones but sold most of its intellectual property to Google in 2017. Who will be next?
More news that may interest you:
VIDEO | This floating bridge for cars is quite an attraction