LG Electronics announced today that is will be closing down its loss-making mobile division, making them the first major smartphone brand to withdraw from the market.
LG’s smartphone division has logged nearly six years of losses totalling some $4.5 billion. Dropping out of the fiercely competitive sector would allow LG to focus on 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, it said in a statement.
Current LG phone inventory will continue to be available for sale. “LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region,” the statement read. “LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business; details related to employment will be determined at the local level.”
The wind down of the mobile phone business is expected to be completed by July 31 although inventory of some existing models may still be available after that.
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