Apr 05, 2021 News
On the morning of April 5, LG Electronics confirmed that the company is preparing to exit the smartphone business. LG said in a statement that this decision would 'focus the company's resources on growth areas, like electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and ToB solutions services and platforms.'
LG said that its mobile phone business will gradually close and is expected to be completed before July 31 this year. Some existing models are still on sale, and it will provide existing mobile phone users with service support and software updates for some time.
There are reports that LG has been considering exiting the smartphone market since the beginning of this year. Although the company spokesperson labelled the company's possible withdrawal from the smartphone business in some reports as 'completely false and worthless', the LG spokesperson later confirmed to the Korea Herald that the company must deal with the department. Make a 'calm judgment'. The spokesperson said at the time that possible measures include 'sell, withdraw and reduce the size of the smartphone business.'
This year in March, the company had tried to find a buyer for its smartphone business, but negotiations were deadlocked, and the department might be closed. There is even news that the company has stopped developing mobile phones with curled screens and has shelved plans for smartphones in the first half of this year.
Due to the nibbled share of competitors, LG has released unique appearance products to attract attention. For example, LG Wing 5G can rotate the screen to reveal a smaller auxiliary screen underneath recent dual-screen devices. LG has also tried to make modular smartphones, but these have become a thing of the past.
Unfortunately for LG, none of these fanciful features is enough to change the smartphone market or become mainstream. Simultaneously, the company's more traditional mobile phones also lag behind competitors in core areas such as cameras and performance.
In the end, LG, like the old equipment manufacturers, gave up the smartphone business, although many old brands are still stuck on the road of OEM for other equipment manufacturers. Nokia's mobile phone products rely on HMD to produce, while TCL originally manufactured BlackBerry, but it withdrew its authority this year. There is also HTC, which is still selling some products but sold most of its IP to Google in 2017. So, who will be next?