It’s over. After almost 20 years in the mobile phone business, LG has decided to get off that train and will definitively close its smartphone division around the world.
As reported from Engadget, the decision has been approved by the company’s board of directors. Said decision will be effective on July 31, 2021, shelving a time. As LG itself explains, this move will allow them to focus their resources on other aspects and areas of growth.
In this way, electric vehicles, robotics or artificial intelligence will be the main beneficiaries. However, a doubt hovers over this whole question and it is that of the possible support for users from an LG device. The Korean company responds in this regard:
“LG will provide service support and software updates for customers of existing mobile products for a period of time that will vary by region.”
Xataka colleagues have been able to confirm that upgrade plans will not change after the end of the production activity. Therefore, the owners of this type of mobile can breathe a sigh of relief; they will continue to receive support on a regular basis.
In turn, Engadget has also been able to confirm that LG will continue to offer after-sales service and spare parts necessary to ensure the viability of the devices.
As for the layoffs or reassignments of employees, LG has not gone into details, except that this issue “will be determined locally.” Apparently, one of the most important reasons behind the decision would be the accumulation of losses during the last six years.
LG already seemed to anticipate this announcement just a few months ago. The competition with Samsung and Chinese rivals with very affordable mobile phones for the consumer are other reasons behind this cessation. Finally, the entity has confirmed to Engadget that the LG Rollable won’t launch. It will not advance beyond the concept shown during CES 2021, so it is totally ruled out.
LG has so far been a regular in the mobile phone industry. It began its journey in 2002 and in 2009 it introduced LG Eve or LG InTouch Max, which ran Android 1.5 and was its first smartphone.