South Korean company to focus on EV components, AI, smart homes and more
Smartphone pioneer LG Electronics will close its mobile unit later this year, in a move to refocus its efforts on higher-growth businesses.
In a statement Sunday night, the South Korean company said its mobile business will be wound down by July 31, though existing inventory may still be available for sale after that. LG said it would continue to provide service support and software updates for its existing mobile phones for an undetermined period.
“LG’s strategic decision to exit the incredibly competitive mobile-phone sector will enable the company to focus resources in 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,” the company said.
LG 066570, -2.52% said it will continue to develop mobile technology, such as 6G, “to help further strengthen competitiveness in other business areas.”
LG was once one of the top-selling smartphone makers in the U.S., and was one of the first to adopt Google’s Android operating system.
Smartphones made up about 8% of the company’s sales last year. But smartphone sales were sluggish, and the segment had been posting losses for nearly six years.