LG announced on Monday that it is leaving the mobile market. The South Korean company said in a prepared statement that closing its loss-making mobile division would enable it to invest “money in growth areas.” Among other products and services, LG’s development areas include electric car parts, mobile electronics, smart home products, robots, artificial intelligence, and business-to-business solutions. This announcement comes just days after LG unveiled its visionary rollable phone at CES 2021.
Current LG phones like the Wing, Velvet, Q-series, W-series, and K-series will continue to sell until the inventory is depleted. Customers of LG’s current mobile phones will receive service assistance and app upgrades for a duration that will vary depending on the customer’s venue.
This ensures that a software upgrade for the Velvet in India will not be available at the same time as for European customers. Throughout the closing of the mobile division, the firm will collaborate “collaboratively” with vendors and business associates. LG has stated that its entire cell phone operation will be shut down by July 31, but that inventory of some of its existing phones will still be available after that date.
It’s unclear if this would work and, in theory, once these phones are sold, LG will provide support and operation for them. And it will not be considered a satisfactory conclusion. It is, however, beneficial to LG phone users. You don’t need to be concerned right now because your handset will be publicly sponsored for a long time.
There is still no word on any layoffs as a result of the announcement. “Details regarding jobs would be decided at the local level,” LG said. According to a previous article, LG may decide to reassign these workers to other divisions within the business.
LG’s decision to leave the cell phone business is not unexpected. Since January, when LG’s CEO announced that the company is considering options for its cell phone operation, which has been steadily losing money, there have been several rumours about it. This involved talking to prospective customers for the company’s phone business. LG was reportedly in talks with at least two firms, but the talks never progressed beyond a certain stage, leaving LG in a precarious position.
LG’s mobile market has been in shambles for about six years, despite the company’s best efforts to compete with Samsung and Chinese players with truly decent phones. LG’s mobile phone business made money for the first time only six years ago.
LG also showed off its first rollable handset earlier this year, which was intended to compete with Samsung and Motorola’s foldable phones. It went on to say that the phone would be available later this year. However, with this news, it’s unlikely that LG’s The Rollable phone will ever be released.
LG’s phones were never particularly impressive. The business bounced back and forth from building the same phones as Samsung, but with fewer advertisement and name awareness, and building wildly unappealing novelty phones with no justification. Who can forget the LG G Flex, which was released in 2013 and used flexible display technology to produce a curved phone? For no apparent cause, the human body was shaped like a banana.
LG made the same error in 2015 with the LG G Flex 2, this time for no apparent cause. In 2015, the LG V10 had a little extra monitor above the main display that showed icons or the time (so, just like the main display?). The LG G5 had a reversible bottom in 2016.
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