LG’s board of directors has decided to exit the smartphone market, something that will officially happen on July 31, 2021.
With many losses in a row and with competition on the rise, the manufacturer has suffered hard blows from all sides, which ended in this decision to stop making smartphones.
This exit will happen worldwide, and it will not be like that of Sony, which still launches phones in some countries.
LG will no longer manufacture smartphones
Since the second quarter of 2015, LG Mobile (part destined for smartphones) has only been showing consecutive losses without stopping, in 2020, the loss with smart phones already represented about 4.4 billion dollars.
So to stop losses after losses, LG officially announces that it is withdrawing from the phone market worldwide.
This means that LG will no longer manufacture smartphones, the manufacturer says it will comply with the manufacturing and supply contracts by the end of May, after that date, the phones will no longer be manufactured.
LG even tried to sell its share of phones, LG Mobile, but the negotiations never went ahead, so without a deal, the solution was really to abandon the smartphone market.
Another item that weighed in the abandonment of the market, was the company’s participation in the world market, LG was responsible for only 2%, which is extremely small for a manufacturer extremely known as LG.
What will happen to LG phones, warranty and support in Brazil and worldwide?
LG reveals that the production of phones will be until May and that afterwards it will still keep its smartphones on the market, until its stocks are sold.
Regarding support and after-sales, the manufacturer LG reports that it will continue to serve its customers as always, including repairing devices that need this type of assistance.
Regarding the updates, LG says that software and security updates will be guaranteed for a certain period of time, but has not disclosed an estimated time that it intends to keep this software support active.
What is the future of LG?
The company makes it clear that the only market that is abandoning is that of smartphones, in other sectors nothing changes.
This means that LG will still continue to sell and work on new smart TVs, connected devices, smart home, artificial intelligence, robotics, electric vehicle components, B2B solutions, as well as platforms and services.
Initially, the intention is to relocate employees who work in the production of smartphones (about 400 in Brazil) to other areas, such as home appliances, but we still do not have official information on what the manufacturer will actually do in all regions.
The highlights of LG Mobile during its lifetime
LG was born in 1947, but only in 1995 that the company started betting on phones, its biggest highlights were the LG Chocolate, LG Shine, already in smartphones, the highlights were the LG Optimus G, LG G2, LG G3.
The latest smartphones from the manufacturer were the LG Velvet and LG Wing, the latter has two screens, the company even announced a smartphone with a scrollable screen, but now the device will never be officially launched.
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