The rumors about it have been gushing for months and now it’s finally official: LG announced its exit from the smartphone industry this morning. In a press release, the company confirmed that it hopes to complete the exit formalities by July 31, 2021.
For most of our tech-savvy readers, LG’s announcement came as no surprise. The letter was on the wall for the Korean company’s smartphone division after making a loss for six years. According to a Reuters The losses reportedly exceeded $ 4.5 billion.
The final straw was the company’s inability to do business with potential buyers. LG was reportedly in talks with Vingroup, a Vietnamese company interested in acquiring the mobile division. That didn’t happen, however, and the talks failed because LG had no choice but to leave the business entirely.
When LG’s cellular division ceases to exist on July 31, 2021, it will end a 19-year-old journey that began in 2002 with the launch of their cell phone – the LG B1200.
It is interesting to note that LG is still the third largest smartphone supplier in the USA – after Samsung and Apple with a market share of just under 10 percent. However, LG has been decimated in other countries – particularly Asia, where the relentless onslaught of highly competitive Chinese brands has been too great for LG. The fact that LG also had a very confusing product strategy didn’t help its cause either.
In case you happen to own an LG smartphone and are concerned about future software updates and support, there is an FAQ page trying to answer your questions. The content of the FAQ page is slightly different for different markets. Here are the links to the FAQ pages for different countries
Take our little poll while you’re here.