South Korea has become one of the biggest electronic giants the world has ever seen. With the likes of Samsung and LG, it is no wonder the South Koreans are highly regarded in the modern era of technology. The two electronic giants have conquered everything from televisions to even washing machines in 2021. They make some of the best-selling televisions, fridges, even down to a water purifier.
They have also been a leader in the smallest things we carry with us every day. Samsung and LG have been at the forefront of smartphone technologies for the past few years now. But there has been some interesting development for the past few weeks or so. One of them is the fact that LG has made an announcement that they are no longer interested in the smartphone business.
The announcement from LG’s very own newsroom describes that LG Electronics Inc. will close its mobile business unit as per approved by their board earlier in the day. What that means is that LG will give up its smartphone business unit and not dabble in the smartphone market in the future.
To be fair, the company has been considering the exit for a while now. LG’s Mobile Business Unit, or its smartphone division has been posting losses for the past five years at least, and they show no sign of recovering. The company has been focusing on selling some mid-range smartphones while developing interesting concepts that produces smartphones like the LG Wing. They also showed some concept of a rollable smartphone, something we do not expect to see LG producing ever with the announcement.
As per the announcement as well LG will continue to make their current inventory available for sale. LG will also continue to provide support and software updates for their current customers and their existing products until an unspecified time. Although there is no indication to when they will end their product life support. They only indicated that it will be varied by regions.
This also means that the company will have to repurpose its workforces from its mobile business units. They mentioned that this will be determined at a local level as well. Still, they have some time to repurpose everyone within the business unit.
LG is expecting the close to complete by the 31st July 2021. While LG will no longer be officially selling their devices by the end of July, they expect some existing stocks to still be available after specified date and those will still be on sale. LG will still be involved in the development of mobile technologies, however. They will continue to work on 6G network related developments even after the Mobile Business Unit concludes its closure.