LG is out of the smartphone business

LG is out of the smartphone business

LG is out of the smartphone business, The company also confirmed today. The decision “will allow the company to focus its resources on areas of growth such as components of electric cars, connected devices, smart homes, robotics, artificial intelligence, business solutions, as well as platforms and services.” , LG confirmed in a statement.

Existing phones will continue to be sold and LG says it will continue to subsidize its products “for a period of time that varies by region.” The company said nothing about possible layoffs, except that “employment details will be determined locally.” LG expects to close its business by the end of July this year.

LG has stopped making cell phones and exited the REUTERS / Kim Hong-Ji smartphone sector

Rumors of this move have been circulating for several months, after the heavy losses the band suffered in the past five years. After being considered a competitor to the South Korean company Samsung, LG’s latest high-end smartphones struggled to compete, while its more affordable phones faced stiff competition from its Chinese competitors. The company had previously said it expected its smartphone division to be profitable in 2021.

Today’s news indicates that the long-announced LG foldable phone is unlikely to see daylight.. The last time the company showed the device at this year’s virtual CES was when the company insisted that the device was real and that it would be released later this year.

The attempt to sell the division would have failed

Rumors that LG is considering ditching smartphones have been around since the start of this year at least.. Although a company spokesperson dismissed an earlier report about the company’s potential exit from the smartphone business as “completely wrong and unfounded,” an LG official later confirmed to the Korea Herald that The company had to make a “cold judgment” on the division. The official said at the time that possible measures could include “selling, recall and downsizing the smartphone business.”

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in March , The company has reportedly tried to find a buyer for its smart phone business. But the talks faltered and it is possible to close the division. The Korean DongA outlet claimed that the company stopped developing its phones with foldable screens and suspended its smartphones scheduled for the first half of this year.

LG launched a number of eye-catching devices because it lost its share to competitors In unusual shapes. For example, it is LG Pavilion, That will rotate its home screen to show a smaller secondary screen, or your newer dual screen devices. LG has also tried a modular smartphone with the LG G5, but it abandoned the initiative after a year.

Unfortunately for LG, None of these features were useful enough to turn phones into resultsMeanwhile, the company’s traditional phones lagged behind competitors in the core areas As a performance camera.

LG joins a long list of notable device makers who have abandoned smartphones over the years, although many brand names have remained on devices made by third parties. The consumer brand of Nokia is still present on phones made by HMD, while the Blackberry brand was initially used by TCL. It will return this year in a device made by OnwardMobility. he is too HTC, Which continued to sell some strange phones but sold most of its intellectual property to Google in 2017. Who will be next?

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