- LG Electronics Inc. (KRX: 066570) announced today that it is closing down its mobile business unit. These are the details.
LG Electronics Inc. (KRX: 066570) announced today that it is closing down its mobile business unit. This decision was approved by its board of directors earlier today.
Why is LG shutting down the mobile business unit? The company said that the strategic decision to “exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.”
LG said it is going to provide service support and software updates for customers of existing mobile products for a certain amount of time — which will vary by region. And LG will work collaboratively with suppliers and business partners throughout the closure of its mobile phone business. The details related to employment will be determined at the local level.
Going forward, LG is going to continue to leverage its mobile expertise and develop mobility-related technologies like 6G to help further strengthen competitiveness in other business areas. And core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.
The wind-down of the company’s mobile phone business is expected to be completed by July 31. But the inventory of some existing models may still be available after that.
