South Korean electronics manufacturer, LG has announced plans to completely shut down its mobile phone business by July 31, 2021.
LG, in a statement on Monday, said some of its phones may still be available for purchase after that date.
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It disclosed intentions to focus its resources on growth areas like electric vehicle components, connected devices, smart homes and robotics after years of recording losses.
“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.
“It will also focus on business-to-business solutions as well as platforms and services,” the statement reads.
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“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.”
LG had said that its smartphone division has recorded total losses of about $4.5 billion in almost 6 years adding that shutting down that division would allow LG to focus on growth areas like electric vehicle components, connected devices, and smart homes.
The decision by LG, to shut down its mobile division will leave its 10% share in North America, where it is the Number 3 brand, to be quickly taken up by Samsung Electronics and Apple Inc with its domestic rival expected to have the edge.
© ControlTV 2021.
