LG Electronics of South Korea announced on Monday that it will close its loss-making cellular division, making it the first major smartphone model to completely exit the market. LG made a difficult decision to shut down its mobile business to focus on other companies that provide consumers with new experiences and value. When your company has been losing money for the past six years, there are few options for keeping it afloat. LG's strategic decision to exit the fiercely competitive mobile phone market will free up resources for growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, business-to-business solutions, platforms, and services. "Stepping Away from Phone Manufacturing and Sales Enables Company to Focus on Growth Sectors Including EVs, IoT and B2B Solutions," LG said in an official statement.
What happens to LG Mobile Customers?
The current LG phone inventory will be available for purchase. Customers of existing LG mobile products will receive service support and software updates for a period of time that will vary by region. Throughout the closure of the mobile phone business, LG will collaborate with suppliers and business partners. Employment-related details will be determined at the local level. Also, after current inventories are exhausted, LG mobile phones and tablets will no longer be sold. LG will not be releasing any new models in the near future.
LG will continue to provide service parts until the end of your limited warranty period or until the end of the period required by your state's laws, whichever comes first. Depending on your carrier, parts may be available for a longer time.
Apps and services will remain available and updated in accordance with current policies. Prior to any changes, relevant information about availability will be announced. LG Electronics will continue to sell wireless headphones, earbuds, and Bluetooth speakers.
LG will continue to use its mobile expertise and develop mobility-related technologies such as 6G in the future to help boost its competitiveness in other areas. Core technologies developed over the course of LG's two decades in the mobile business will be retained and applied to current and future products.
In line with applicable regulations and contractual obligations, software and security updates, as well as replacement parts, will be available.