LG has come out today and announced that it will close its failed mobile phone business worldwide as the brand now looks to focus its resources in developing areas such as electric vehicle components, connected devices, smart homes, robotics, AI and B2B solutions, and platforms and services.
The South Korean based company said in a statement that was released today carried the decision. The unsurprising move follows the company’s statement from January when it said it was reviewing the direction of its smartphone business. Reports emerged that said LG was looking to sell its smartphone business. In the same month, the company said it would launch a rollable phone this year but it appears all the efforts to keep the business stay afloat failed.
The poor financial performance of LG’s smartphone business has been a public talk for several years now. Like other Android smartphone vendors, LG has struggled to turn things around. The company focused on mid-range and high-end smartphones, two segments of the market that have become increasingly competitive in the past decade thanks to the rise of Chinese phone makers such as Huawei, Xiaomi, OnePlus, Oppo and Vivo that are launching better value-for-money models every few months. But also the once rival HTC has been struggling too.
The LG mobile phones business is expected to close completely by July 31st this year although the inventory of some existing models may still be available after that according to the statement.