LG Is Now Officially Out Of Smartphone Business

After months of rumours and updates about LG leaving the smartphone market, it has now been confirmed: Korean electronics giant LG is pulling out of the mobile phone sector. A sale and restructuring are now planned, which should be completed by July 31, 2021.

The group announced this today, ending the months of speculation about LG’s smartphone division. The decision does not come as a surprise. The end had been looming for a long time and in the past week, there were new indications of the imminent end of the deal. According to the rumour mill, the company had also tried to sell the division. Now, however, the decision has been made to close the “costly” division, according to the LG.

Expertise in the mobile communications sector should be used

In the press release today on the end, it says, among other things, that the group will continue to use its expertise in the mobile communications sector and develop mobility-related technologies such as 6G, but is no longer planning its own smartphones labelled LG Electronics, neither the company has any collaboration planned in the smartphone sector.

Earlier: LG To Announce Exit From Smartphones Business Next Week

“LG Electronics Inc. (LG) announced that it is closing its mobile business. The decision was approved today by the company’s board of directors. LG’s strategic decision to withdraw from the highly competitive mobile phone sector enables the company to focus its resources on growth areas such as components for electric vehicles, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, platforms and services. “

Sale starts

In a short term, the LG group now wants to continue to offer its stock of LG phones for sale and will maintain service support and software updates for customers of existing mobile products. The cell phone business run is expected to be completed by July 31, although the inventory of some existing models may still be available after that.