The South Korean smartphone manufacturer LG is set to exit the smartphone business as it struggles to compete in a market which is dominated by smartphone giants such Apple, Samsung and booming Chinese brands.
In a statement issued by the company, the tech giant said it will shut down its mobile business unit by the end of July as it looks to focus on smart home products, an area where it is one of the biggest providers as well as electric vehicle components, robotics, artificial intelligence, business-to-business products and other connected devices.
“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,” the company said in a statement.
Although LG may be shutting down its smartphone production, the company has indicated that it will continue to supply services for existing mobile products.
“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.”
“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,” the company said.
While the company may be facing challenges within the mobile space, the world-renowned tech giant has seen a spike in its various sections of the business which includes Home Appliance & Air Solution, Home Entertainment, Vehicle Component Solutions and Business Solutions Company.
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