The signs were all there and now here’s the consequence – LG has decided to shut down its mobile phone business worldwide. The South Korean giant has said that its board of directors approved the decision earlier today and that the change will allow it to concentrate its attention on other areas of growth like “electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.”
This means no new smartphones will be released by the company from hereon, while those that have already been launched will continue to be on sale till stocks last. LG has also confirmed that it will continue to provide service support and software updates for customers of existing phones for a period of time which will vary by region. Nothing about layoffs has been said till now, but the company did reveal that employment decisions would rather be taken on local levels.
“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,” the company said in a statement.
LG’s mobile phones division had been dealing with heavy losses for the past few years. Neither its flagships nor its affordable handsets were able to compete very well with other offerings in the market. Rumors of its exit had hence started making the rounds earlier this year, but the company had rubbished the reports quickly.
LG Wing will remain the last big flagship handset released by the company. The device is known for its T-shape form factor that reveals a smaller secondary display underneath the primary one.