LG officially announced the shutdown of its loss-making mobile phone business today. The board of directors approved the decision to allocate resources towards other profit-making units. These include consumer electronics, smart home systems, robotics, electric vehicle components, artificial intelligence solutions and B2B solutions.
Few days back, we were expecting a release date for its new rollable smart phone. However, now the company has officially declared that they will stop manufacturing mobile phones altogether.
What Led LG to Shut Down its Mobile Phone Business?
There was a time when the South Korean company held a third position in the US smartphone market. They were best known for selling cell phones that last long.
However, over the years their position in the global smartphone market has deteriorated drastically due to increase in competition. This competition came from the Chinese smartphone brands OnePlus, Xiaomi, Vivo, Oppo and Huawei.
What is the Future of LG Now?
While the company announced a complete shutdown of the mobile manufacturing unit by 31st July 2021, it will be focusing on other units which are prospering or have potential. The board said that the decision is strategic to focus resources on providing products and services that will be more profitable to the company.
The world is currently working on developing 5G network. However, LG is going to focus on evolving it for 6G. Other than that, they will be making electric car components like power cells for Tesla. While their consumer electronics division has been popular for refrigerators and televisions, they are now also going to focus on smart home integration.
