Although since the start of this year 2021 there has been a rumor that LG may shut down its telephony business, it was only today that the company released a statement in which it informs that it will shut down all of the worldwide mobile phone business to focus on other key areas.
In it, the South Korean company reports that it is making the strategic decision to exit the competitive mobile phone industry in order to focus on other key brand sectors such as electric vehicles, IoT solutions and the Professional B2B.
LG says the current inventory of phones on sale will continue to be available. The company states that it will provide technical support and software updates to customers of its existing mobile products for a period that may vary by region.
Going forward, according to the statement, LG will continue to use its experience in this market to develop technologies related to mobility, 6G, as well as to help further strengthen competitiveness in other business areas.
The liquidation of the mobile phone business is expected to be completed on July 31, although inventory of some existing models may still be available even throughout the year. The company will deal with the details of the closure and employment locally.
All the rumors emerged in early February when articles like Korea Herald, released a statement that was allegedly sent by the company’s CEO, Known Bong-seok, to all of his employees in order to quell the rumors.
The director said that “the company is considering all possible measures, including the sale, withdrawal and reduction of the activity of smartphones”. It wasn’t the first time something like this had been heard, but it was surprising that it was internally.
Although the smartphone industry continues to thrive, with the arrival of new Chinese brands to the fore, the more traditional ones have struggled in recent years to maintain their hegemony and competitiveness in terms of price and performance.
This is the case with LG, which, as happens with well-known brands like Sony, barely hold a market share that last year 2020 represented a figure of 2% of sales of devices in the world, like us. can extract it from
Fierce competition in the smartphone market
The company has endeavored in recent years to offer terminals that differentiate from other brands, as we have seen with the arrival of models LG Wing and the LG Velvet, both combining the dual screen to ensure an innovative user experience.
In fact, coinciding with the celebration of CES 2021, we also learned that LG is working on its mobile project with a roll up screen whose product name would adopt the term LG Rollable. Now we don’t know where it all will end up.
If you are interested, you can see our special mobile phones that will arrive in 2021.
What is a fact is that the sales figures have not seemed to accompany the company in recent years, where it has always maintained high performance mid-range models, especially in the field of photography, and also in the more premium range, but with strong competition.
Take a look at our special from best LG mobile phones.