After almost six years of uninterrupted losses, LG unplugged its smartphone unit. The South Korean manufacturer has made some of the best Android phones over the years, but devices like the LG Wing have failed to make any headway.
LG sold a total of just 24.7 million phones last year, less than a tenth of its South Korean rival Samsung. With a loss of $ 4.4 billion over the past five years, LG has officially announced that it is leaving the cellular business. The brand will continue to sell its current inventory but will no longer produce phones.
LG said last year it was open to “all options” regarding its mobile division, including a full sale. According to the Korean news agency YonhapThe company was in talks with Vingroup from Vietnam and Volkswagen from Germany, but could not win a buyer.
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LG announces that it will add customer service and software support to its existing portfolio – including the Android 12 update, when it becomes available later this year. The company’s website (via XDA notes that the upcoming Android update is rolling out, and while there is no mention of which models will receive the update, it will likely be limited to LG’s flagships.
In the future, LG will focus on the EV segment, IoT, AI and 6G:
LG’s strategic decision to leave the incredibly competitive wireless sector allows the company to focus resources on 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 .
LG will work with suppliers and business partners during the closure of the cellular business. Employment details are determined at local level.
In the future, LG will continue to use its mobile know-how and develop mobility-related technologies such as 6G in order to further strengthen its competitiveness in other business areas. Core technologies developed in LG’s two decades of mobile business operations are also retained and applied to existing and future products.
The liquidation business is expected to be completed by July 31, although inventory of some existing models may still be available after that.