South Korean company LG Electronics, one of the world’s largest manufacturers of consumer electronics and household appliances, has decided to abandon smartphones and focus on other business areas. It is assumed that the production of smartphones will be stopped entirely after July 31, 2021.
The decision to stop manufacturing cell phones will allow the company to focus on other, more profitable, and priority areas of its business, such as electric cars, the Internet of Things, and business solutions.
“LG’s strategic decision to exit the incredibly competitive cell phone sector will allow the company to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business solutions, as well as platforms and services,” LG Electronics’ press office commented.
The company stressed that the smartphones on sale would receive service support and customer software updates. The exact timing of the support has not yet been reported. Employment issues for employees involved in the cell phone sector will be resolved in local markets, depending on the situation.
In early 2021, it was reported that the company’s losses in the last twenty-three quarters exceeded $4.5 billion. Against this background, LG Electronics has announced plans to change its business in global markets. In particular, plans to abandon the production of phones, which began back in the 1990s.
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