LG announces smartphone business is shutting down
The company’s board of directors passed a vote Monday to halt its mobile communications division from July 31.
The announcement comes three months after LG abruptly announced it would review its smartphone business from scratch.
“The dominance of two companies was strengthening in the premium smartphone market, and competition in the affordable price segment was also intensifying,” LG said in a Monday statement.
“LG Electronics failed to actively respond [to such market conditions].”
To fulfill their existing contracts, LG will manufacture smartphones by late May and supply them to telecommunications companies. The company also said it will continue providing repair services to LG phone users.
All staff in the mobile communications (MC) division will remain at LG, the company said, but will be relocated to other divisions within the company or among LG Group affiliates.
LG will continue to pursue tech developments that had been headed by the MC division, such as the 6G network, camera and software — all of which LG said is necessary technology for “next-generation television, home electronics, electric auto parts and robots.”
BY SONG KYOUNG-SON [firstname.lastname@example.org]