LG announces the closure of its smartphone business

LG announces the closure of its smartphone business
LG announces the closure of its smartphone business
LG just announced today (4) that it is leaving the smartphone market. The statement was made by the company itself on its website where it says that the decision was made in order to allow the company “to concentrate resources on growth areas, such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and solutions. business-to-business, as well as platforms and services “.

According to LG, the phones already launched will continue to be sold. In addition, all of your customers will be supported by the company if they need it “for a period that will vary by region”. The South Korean company did not say anything about possible layoffs, but said that “the details related to employment will be determined at the local level”. According to the company, the plans are for the closure of the division to be completed by the end of July 2021.

There were already rumors about the possibility of closing the LG cell phone business. The reason for this was the division’s heavy losses over the past five years. The company previously said it hoped to make its smartphone division profitable by 2021.

LG official announcement

Since the second half of 2015, our global mobile phone business has suffered an operating loss for 23 consecutive quarters, resulting in a cumulative 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 se junta a Nokia ea Blackberry

Today LG joins the group of smartphone manufacturers that have given up on this market in recent years. Nokia, for example, uses devices developed by HMD. Blackberry, on the other hand, ended up being initially used by TCL and this year it should return with devices made by OnwardMobility.

What did you think of the news? Do you own a smartphone from LG? Comment below and share your opinion with us!

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