LG has announced that it is shutting down its smartphone business. The company has struggled to compete with the likes of Samsung, Apple, Xiaomi, Huawei, and many others.
The news came via an official press release. The company will continue to sell its existing models and support them, more details below.
Reasons Behind LG’s Decision
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.
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.
This is something that has been rumored for the last few months, as the company has struggled to sell its devices. The smartphone market has become increasingly saturated, with major players like Samsung and Apple dominating the high-end segment, while companies like Xiaomi and Huawei have captured significant market share in the mid-range and budget segments.
Impact on Existing Customers and Future Plans
For existing LG smartphone users, the company has assured that it will continue to provide service support and software updates for a certain period, although the duration will vary by region. This means that customers will not be left in the lurch immediately and can expect some level of continued support.
LG’s exit from the smartphone market will allow the company to reallocate its resources to other burgeoning sectors. The company has identified several key areas for growth, including electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions. These sectors are expected to see significant growth in the coming years, and LG aims to be at the forefront of innovation in these fields.
For example, in the electric vehicle (EV) sector, LG has already made significant strides. The company supplies batteries to several major automakers and is involved in the development of various EV components. By focusing more on this sector, LG aims to capitalize on the growing demand for electric vehicles worldwide.
In the realm of smart homes, LG has been a pioneer with its range of connected appliances and devices. From smart refrigerators to AI-powered washing machines, LG’s products are designed to make life more convenient for consumers. By doubling down on this sector, LG hopes to further integrate its products into the daily lives of consumers.
Robotics and artificial intelligence are other areas where LG sees potential for growth. The company has already developed several robotic solutions for both consumer and industrial applications. By investing more in these technologies, LG aims to create innovative solutions that can improve efficiency and productivity across various industries.
The decision to exit the smartphone market is undoubtedly a significant one for LG, but it is also a strategic move that could pay off in the long run. By focusing on these high-growth areas, LG aims to position itself as a leader in the next wave of technological innovation.
You can find out more information about LG’s plans to close its mobile phone business at the link below.
Source LG
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