the end! LG announces exit from the global cellphone market

the end! LG announces exit from the global cellphone market
the end! LG announces exit from the global cellphone market
In a statement released late on Sunday evening in Brazil – South Korea’s morning – LG announced its exit from the global cellphone market. The expected closure of the mobile phone unit was approved by the company’s board of directors.

According to the company, the decision will allow the brand to invest in other segments in which it already operates. Among those mentioned are components of electric vehicles, connected devices, smart houses, robotics, Artificial Intelligence and B2B solutions, as well as platforms and services.

The manufacturer stated that it intends to continue the development of technologies aimed at mobility. Among them is 6G. Other technologies developed by the company over the years will also be retained and applied to current and future products.

LG further explained that the current smartphone stock will continue to be available for sale. The company is committed to providing support and software updates to its existing users. However, the period will vary by region.

Job details have yet to be released. According to the global communiqué, they will be defined at the local level. This means that possible dismissals or repositioning of its professionals may be different in each country.

The Korean manufacturer also added that it expects to complete the closing of its mobile business by July 31 this year.

She also explained that the inventory of some models already launched can be found on the market even after this period. In other words, as long as there is a stock of branded devices, they will be available on the market.

LG has had its mobile phone unit for more than two decades. Its operations in the area began in 1995, under the brand “Hwatong”. Over time, it launched products that stood out in the market.

Examples include the LG G3 smartphone and the curved G Flex, in 2013; the introduction of the ThinQ line at the end of the past decade; Velvet, which promised to be a cost-effective alternative for those who want a powerful cell phone; and the LG Wing, an ambitious project with a rotating screen, but which ended up failing to reach 100,000 units sold.

Even with a strong presence in product launches – especially in the entry and intermediary categories -, its global share in the smartphone market is stagnant in the range of 1% or 2%.

LG Electronics do Brasil also released a note to explain the exit of the cell phone market. The national arm detailed that there is an operational loss for 23 consecutive quarters, since the second half of 2015.

The company adds that it will meet all legal obligations and thanks users for the period in this area. However, he did not say what the future of the current factory in Taubaté, in the interior of São Paulo, will be – the plant responsible for producing the phones. Check out the full statement:

“Since the second half of 2015, our global mobile phone business has suffered an operating loss for 23 consecutive quarters, resulting in an accumulated accumulation of approximately $ 4.1 billion (US) by the end of 2020.

After evaluating all the possibilities for the future of our cell phone business, Headquarter Global decided to close this division in order to strengthen its future competitiveness through selection and strategic focus.

As a company that deeply values ​​the contribution of every LG employee, customer and partner, we will communicate openly and transparently during this process, seeking a fair and pragmatic approach, while meeting legal obligations.

It is with sadness that we share this news with our customers and partners who throughout all these years have shown us confidence and supported us.

LG Electronics do Brasil thanks you and will focus heavily on your business in order to continue to provide innovative products and services that will make life better. ”

LG Electronics do Brasil

What did you think of LG leaving the smartphone market worldwide? Comment with us!

Get the latest news delivered to your inbox

Follow us on social media networks

PREV Chevrolet Silverado has delayed launch in Argentina
NEXT Senate approves bill that extends the 2021 Income Tax delivery deadline until July | Politics