LG songs inform that the company has now decided to close down its mobile division, something that was flagged for already in January.
The decommissioning of the mobile division must be completed by 31 July, but it can of course take a little longer than that before the sale of its stocks is sold out.
In 2020, LG sold 23 million mobile phones, which corresponds to two percent of the global market. The company’s main market is North America, where with a share of 10 percent it has been the third largest brand after Samsung and Apple.
By closing down the mobile division, LG hopes to focus on other areas, including artificial intelligence, robots, the smart home and components for electric cars.
LG will consider stopping manufacturing smartphones in 2021. This according to a statement sent by the company’s CEO Kwon Bong-seok to the employees, reports The Korea Herald.
In the announcement, Kwon Bong-seok writes that LG will have to make major decisions regarding its mobile business, of which alternatives that are being considered are to reduce it, sell it or wind up it. So far, no final decision has been made.
In contact with The Verge LG confirms the mailing as genuine, but also points out that no final decision on the matter has been made yet.
LG has recently struggled to compete with other smartphone manufacturers such as Samsung, Huawei, Xiaomi and more. Over the past five years, the company is estimated to have lost around 5 trillion won, corresponding to around SEK 38 billion, on its smartphone business.
LG previously sold its smartphones in Sweden, but has stopped doing so in recent years.