LG has stated its plan to leave the phone market.

Spread the love

Following a six-year loss of $4.5 billion,
Following months of rumours, LG has finally announced its departure from the phone market. The board of directors of the Korean conglomerate accepted the decision to close its mobile unit today. It comes after the division lost $4.5 billion in the previous six years.

Though still a major player in the worlds of TVs, home electronics, and displays, LG has spent years seeing its share of the handset industry shrink to about 2%—the company was the third-largest phone manufacturer in 2013.

LG shipped just 6.5 million smartphones in Q3 2020, down 7.2 million compared to the same quarter a year earlier. For the entirety of 2020, it shipped 23 million phones. Samsung, for comparison, moved 256 million.

The LG Wing 5G

The signs have been looking ominous for LG since January. CEO Kwon Bong-seok advised staff that the unit was “considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.”

An exit from the market looked increasingly likely after LG failed to secure a buyer for the division last month. Germany’s Volkswagen AG and Vietnam’s Vingroup JSC were reportedly interested, but negotiations fell through. Now, the seemingly inevitable has happened.

“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 and artificial intelligence,” it said in a statement.

RECOMMENDED READ:  Underground stolen card forum announces when it will close down, give no reason

The decision means devices including the rumored LG V70 ThinQ, LG G10 and LG Velvet 2, as well as the LG Rollable, are unlikely ever to see the light of day.

LG said its current inventory of handsets will remain available to buy online and in stores, while existing customers will keep receiving software updates and service support “for a period of time which will vary by region.”

The company expects to wind down its mobile business by July 31, though some existing models may still be available after that. It won’t be leaving the industry behind entirely; two decades of mobile business operations will be applied to related technologies such as 6G and other future products.

It’s a shame to see LG leave the phone space, which accounted for just 7% of its total revenue—the smallest of the company’s five divisions. It was known for innovating, not always successfully, in an area often afraid of the word. There was the modular G5, the dual-screen LG G8X, the flexible LG G Flex 2, and the futuristic LG Wing 5G, to name a few. From those of us who have owned an LG handset or still do, we bid a sad farewell.

RECOMMENDED READ:  Yearn.Finance restores yDAI vault , DeFi project repays $11M to recent hack victims.

Masthead credit: Grzegorz Czapski

 118 Interactions,  2 today

READ ALSO:
A new Android feature would warn users to refrain from using their phones while walking.

Have your head held high. Are you one of those people who, when walking along, becomes so engrossed in their Read more

Wacky robot modder has taught Boston Dynamics’ robodog Spot to pee in a cup of beer.

This is unquestionably the last thing you'd want this robot to do. Tired of having to empty your red Solo Read more

VW teases a bigger ID.6 electric SUV ahead of its debut at the Geneva Motor Show.

Expect a finished version of the ID.Roomzz definition. VW has another batch of electric cars in the works, and it Read more

Despite chip shortages, PC shipments rose by 55% in Q1.

Apple continues to be the largest winner, with progress more than doubling in the first quarter of 2021. The global Read more

Apple claims that iMessage on Android would ‘hurt its business more than benefit it

Epic contends that Apple binds users to its environment and does not let them leave quickly. Apple's programmes deliberately trap Read more

Firefox will cease to support Amazon Fire TV and Echo Show systems in few days.

The browser's support will be discontinued on April 30th. Starting on April 30th, Mozilla will discontinue Firefox support for the Read more

Web 3.0: The Future’s Decentralized Internet

Few technologies have come close to matching the ease and importance that the internet provides to billions of people around Read more

Alibaba reportedly fined $2.8 billion in a Chinese antitrust lawsuit.

The investigation focused on Alibaba's "monopolistic practises." After completing an antitrust probe into suspected monopolistic activities, Chinese regulators slapped Alibaba Read more

How Biden plans to us his first budget with US factories to combat chip shortages.

It is investing millions of dollars in domestic manufacturing efforts. To address chip shortages, President Biden is not depending entirely Read more

The FBI has charged a guy with plotting to blow up an Amazon data centre.

He supposedly desired to 'destroy' the majority of the internet. According to law enforcement, Amazon's data centres are also prime Read more

NASA has postponed the Mars helicopter ride until at least April 14th.

NASA placed the flight on hold after a test posed enough concerns. To see NASA's Mars helicopter in motion, you'll Read more

Leave a Reply

Contact Us