Keypoints:
- LG announces that it is closing down its mobile business unit worldwide.
- The decision was approved by its board of directors on Monday, 5 April 2021.
- LG was early to market with a number of cell phone innovations.
- Currently, its global share is only about 2 percent.
- Even though the company is shutting down its mobile business, it will still provide service support and software updates for customers of existing mobile products.
As per newsroom announcement by the company,on 5th April, 2021, Monday, the board of directors approved the decision of the company to close down its mobile business unit worldwide.
LG says that the company’s exit from the mobile unit will help them to focus on other areas like “electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.”
By 31st July, the company expects to wind down of the mobile phone business. However, inventories of some existing models may still be available after that.
The period for which the customer care service and software updates will be available will depend on the region.
LG is set to make itself the first major smartphone brand to shut down its mobile business from the market. The decision of the company to shut down will leave its 10% share in the North America. In North America,the company is the no.3 brand to be gobbled up by smartphone giants Apple and Samsung electronics.
LG will use its expertise to develop mobility technology such as 6G. The company’s other technologies will be used in existing and future products.
