Well, it’s finally happened: Bowing to the inevitable, LG this morning announced that it is exiting the smartphone business.
“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,” an LG statement explains. “LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.”
LG had been considering this action for years and in recent months it sought a buyer for the struggling business, which has posted a collective $4.4 billion loss over the past six years. The firm indicated that it was looking for a way out three months ago when CEO Brian Kwon said that the company was “open to all options.”
LG expects to complete the wind-down of its mobile phone business by July 31.
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