LG Electronics announced on Monday that it will close its deficit mobile business unit.
The decision was approved by the board on the same day. The exit is expected to be completed by July 31st.
LG’s current phone inventory is still available for sale. The company will also continue to manufacture mobile phones until the end of May to maintain its commitment to carriers and other partners.
South Korean electronics manufacturers have said they will provide service support and software updates to existing mobile product customers for a period of time, depending on the region.
According to LG, withdrawing from the “very competitive” mobile sector will allow the company to focus its resources on other growth areas such as electric vehicle components, robotics and artificial intelligence.
The Korean company also said it will continue to research and develop core mobile technologies such as 6G, despite the closure of its mobile business unit.
He added that the technology developed during the company’s 20 years of mobile business operations will be retained and applied to existing and future products. Employees of the mobile business unit are transferred to other business units.
LG announced in January that it was considering the direction of its mobile business, adding that it was open to all possibilities. As of the fourth quarter of last year, the business unit recorded losses for the 23rd consecutive quarter.
LG will end smartphone business
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