The South Korean company plans to stop producing mobile devices by July 31. It has been producing phones since the 1990s.
South Korean company LG Electronics Inc. announced the decision to stop manufacturing smartphones. This is reported on the official website of the company.
“LG’s strategic decision to exit the highly competitive mobile phone sector will allow the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business solutions, as well as platforms and services,” the statement said.
It is planned to stop the production of smartphones by July 31 of this year. The sale of already released devices will continue, and the company also promises to provide service support for the devices for some time. The exact date will depend on the region.
According to the Yonhap agency, LG’s decision is due to the loss-making nature of this business segment and the high level of competition in the market. The company negotiated the sale of smartphone production to the Vietnamese corporation Vingroup and the German carmaker Volkswagen, but it was not possible to reach an agreement.
LG Electronics Inc. is part of the LG Group, founded in 1958. The company started producing mobile devices in the 1990s.