14 DAY TRIAL // Everybody knew this was supposed to eventually happen, but LG officially confirmed it today: the company is giving up on smartphones, thus focusing on other product categories.
It’s not a secret that LG hasn’t necessarily been a top performer in the smartphone business, and this has had a major impact on its long-term strategy and new product releases. The company has pushed back its most innovative products, and now took the decision to give up on smartphones completely.
The company says its devices would remain available for purchase until all inventory is cleared out, while support would continue to be offered depending on each region.
“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. Details related to employment will be determined at the local level,” the company said in a press release.
As for the product categories LG would remain committed to, the company says it wants to bet big on EV components, connected devices, AI, and smart homes.
No new LG smartphones
The smartphone business is now projected to reach the final wind down stage by July 31, though the company admits that selling the existing inventory could take longer than that.
“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. 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,” it says.
Needless to say, no new products would be launched, so all the innovative mobile devices announced by LG recently are pretty much dead too.