LG to stop making smartphones after years of losses

Electronics large LG plans to cease making smartphones after struggling for years to compete in a market the place it was as soon as a number one participant.

The South Korean conglomerate will shut down its cell phone enterprise and exit the “extremely aggressive” business by July 31, it introduced Monday.

Rumors of the transfer began swirling initially of 2021 as LG’s smartphone unit racked up hefty losses to the tune of about $4.5 billion in practically six years and lagged behind bigger rivals Apple and Samsung.

LG says the choice will permit it to pour assets into different “development” companies, comparable to good properties, robotics, synthetic intelligence and electric-vehicle elements.

LG continued to roll out high-tech telephones regardless of its struggles, such because the swiveling two-screen Wing it launched final yr and a “rollable” gadget with an increasing display screen that it reportedly deliberate to launch this yr.

LG only shipped 23 million phones last year, compared to Samsung's 256 million.
LG solely shipped 23 million telephones final yr, in comparison with Samsung’s 256 million.
AP/Ahn Younger-joon

The latter gadget now seems unlikely to ever hit shops, however LG mentioned the stock of some current fashions could also be accessible after its smartphone unit is wound down. The corporate will even present software program updates and repair help for current merchandise for a sure period of time that may differ by area, in response to a information launch.

LG will focus its efforts on smart homes, robotics, artificial intelligence and electric-vehicle parts.
LG will focus its efforts on good properties, robotics, synthetic intelligence and electric-vehicle elements.
JUNG YEON-JE/AFP by way of Getty Photographs

“Core applied sciences developed in the course of the twenty years of LG’s cellular enterprise operations will even be retained and utilized to current and future merchandise,” the corporate mentioned.

LG was as soon as a serious pressure within the smartphone market — it developed among the finest early show and digital camera applied sciences and was a pioneer of the now-ubiquitous Android working system, in response to Bloomberg Information.

The corporate was the world’s third-largest smartphone producer behind Samsung and Apple on the peak of its success in 2013. However its main fashions suffered from {hardware} and software program struggles in more moderen years.

LG Electronics Inc.'s smartphone Q51 is for sale at a mobile phone shop in Seoul, South Korea.
LG Electronics Inc.’s smartphone Q51 is on the market at a cell phone store in Seoul, South Korea.
AP/Ahn Younger-joon

LG solely shipped 23 million telephones final yr, in comparison with Samsung’s 256 million, in response to business analysis agency Counterpoint.

With Submit wires