After months of speculation, LG Electronics today confirmed that it will be shutting down its smartphone division to allow the company to “focus resources in growth areas”.
These areas, including smart phones, televisions, home appliances and artifficle intelligence, are industries that LG already targets and leads the market in. It recently announced its 2021 OLED and NanoCell lineup of TVs after two years of award-winning models.
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’s recent smartphones have struggled to compete in what it calls an “incredibly competitive” market, with recent announcements, such as the LG Wing, and the unreleased LG rollable phone, failing to gain attraction.
LG was rumoured to be leaving the smartphone market in March and was looking for a potential buyer of its division, but ceased talks and made the decision to shut it down. It reportedly stopped development of the rollable device in the first half of 2021.
Although the shutdown was announced on Monday, LG says it doesn’t expect the business to cease trading until July 31st. Stock of current devices may also be available after that date.