Seoul, South Korea
LG Electronics, At the time, one of the largest mobile phone manufacturers announced today that it would stop producing these devices due to the growing competitiveness of the industry and after the industry has generated a deficit for the past five years.
The South Korean company made public the decision, which was approved by the board of directors on Monday, via a notice to the South Korean stock regulator.
In a subsequent statement to the media, the company explained that it is leaving the “incredibly competitive mobile phone industry” to focus its resources on areas where it sees growth potential, such as electric vehicle components, technology 6G, robotics, home automation or artificial intelligence.
The company also indicated that its currently available inventory will remain for sale and that “LG will provide service support and software updates to customers of existing mobile products for a period that will vary by region.”
LG expects that “the liquidation of the mobile telephony business will be completed by July 31, although stocks of some existing models may still be available after that date.”
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LG will work closely with vendors and partners throughout our mobile phone shutdown process. Details regarding templates will be determined locally, it added in the statement.
Going forward, the Seoul-based company pledged to continue to use “core technologies developed during its two decades of mobile business” to apply to “existing and future products.”
The decision comes after the company noted in its last earnings presentation in January that the future of this division, in the red since the second quarter of 2015, with accumulated losses worth about 5 trillion won (about 4,434 million won). Dollar), was open to ‘any possibility’.
LG, which at the beginning of the last decade left the third world mobile phone manufacturer behind on its own Samsung and Apple, According to the consultancy firm Counterpoint Research, it currently occupies the ninth position with a share of only 2% of the world market.