It is confirmed! LG is closing down mobile phone business

LG has confirmed it is exiting mobile phone business.

This company has announced the news on Monday, April 5, local time, saying that leaving the “incredibly competitive” mobile phone sector will enable it to focus on 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.”

The LG’s mobile phone business is likely to be completed by July 31, although the company said that some of its existing phone models will still be available while stocks last.

The customers of its mobile products will continue to receive service support and software updates “for a period of time which will vary by region.” 

Customers can refer to an FAQ page posted by LG with everything you need to know about product support and other related issues moving forward.

News of LG’s departure from the mobile phone market had been expected, though it wasn’t clear until now if it would close the business or sell it. The company found the sector hard going for years, with a Korea Herald report in January suggesting LG’s mobile unit had lost around $4.5 billion since 2016. In addition, as of 2020, LG’s smartphone business had posted operating losses for 23 consecutive quarters going back to 2015, and toward the end of 2020 its global market share for smartphones was a mere 1.91%, according to data from Counterpoint Research.