South Korean tech giant LG Electronics has made an official exit from the smartphone business, the company confirmed today in a statement. The company notes that the decision 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 notes that it will keep selling the existing phones and offer support for its existing products “for a period of time which will vary by region.” LG says that it expects to complete the business’ closure by the end of July this year.
The rumours related to this news have been floating around from several months, following continuous loss from the division over the past five years and the company has been struggling to stay competitive in high-end smartphones while its low cost smartphones have been facing stiff competition from Chinese companies when the company hoped to make its smartphone business profitable in 2021.
The company hasn’t said anything about possible layoffs except that “details related to employment will be determined at the local level.”
Earlier this year, LG spokesperson called an early report of the company’s exit from the smartphone business “completely false and without merit,” that was later reported by The Korean Herald that the company could take potential measures including “sale, withdrawal and downsizing of the smartphone business.”
Now, LG joins the list of high-profile electronic device maker to give up on smartphone business over the years including Nokia that is now operated by HMD Global, Blackberry that is now expected to return this year on a device made by OnwardMobility.