Goodbye, LG Leaves the Smartphone Business

Tech giant LG Electronics Inc. today Monday, April 5, 2021 announced it was closing its mobile phone or smartphone business worldwide due to losses.

The South Korean company said in a statement that its board of directors approved the decision today.

Earlier in January 2021, LG announced it was reviewing the direction of its smartphone business.

Citing TechCrunch, LG said it will continue to sell devices until supplies run out, and will provide software support for its existing line of smartphones for a period of time, by region.

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The company said the status of employees in the smartphone line will be determined at the local level.

In January, reports emerged that said LG wanted to sell its smartphone business.

At the time, the company said it would launch a rollable phone this year. But apparently all efforts to keep the business afloat failed.

"Going forward, LG will continue to leverage its cellular expertise and develop mobility-related technologies such as 6G to help further strengthen its competitiveness in other areas of its business," LG wrote in the announcement.

"The core technologies developed over two decades of LG's mobile business operations will also be retained and applied to existing and future products," they added.

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The poor financial performance of LG's smartphone business has been public information for several years.

LG focuses on mid-range and high-end smartphones, two market segments that have become increasingly competitive in the last decade thanks to the rise of Chinese manufacturers such as Huawei, Xiaomi, OnePlus, Oppo and Vivo launching better value.

Some smartphone manufacturers today rely heavily on software services like mobile payments to make money.

While LG launched its mobile payments service in 2017, two years after Samsung launched Samsung Pay, LG's portfolio of services has remained thin over the years.***