LG Kills Smartphone Business After Incurring $4.5 Billion Loss Globally

LG confirmed the shutdown of its mobile phone business and focus on electric vehicle components, connected devices, and more.

lg-kills-smartphone-business

LG has officially confirmed the shutdown of its smartphone business starting today. Last week a new smartphone listing on Bluetooth SIG certification suggested that the company might not exit the business, but now all the confusions are cleared by the South Korean tech giant. Yes! You read it correctly; we are not going to see new LG smartphones ever. According to the company, it will now highly focus on growth in other areas like electric vehicle components, connected devices, smart home appliances, robotics, AI, and B2B solutions.

LG Finally Confirmed the Big News

The company also confirmed that the existing smartphones in the market would not be retained, and you can still grab the last few models from the brand. Notably, the company continues to support its products, but it will be for a limited period depending on the region. The company is expected to make the complete business closure by the end of July 2021.

The news about LG mobile business shutdown was rumoured for several months. It has been reported that the company has taken this decision due to losses. According to the report, LG was facing huge losses for nearly the last six years. As per the Verge report, the company has incurred a loss of $4.5 billion, which is approximately 33,010 crore in INR. The company recently launched its high-end dual-display smartphone and struggled to compete with a brand like Samsung, which already has a stronger hold in South Korea and globally as well.

LG’s confirmation also puts a full stop to its long-teased rollable smartphone, which was expected to launch this year. The LG rollable smartphone will never see the light of launch as the company has shut down its mobile phone business. The company showcased the device back in CES 2021. Unfortunately, the smartphone will remain a prototype and never make its way to the global market.

Back in March, it was reported that the company is trying hard to find a buyer for its smartphone business. But it seems that LG was unable to find a potential buyer, which leads to the shutdown of the business.

Read more on:

Karan Sharma covers telecom, smartphones, apps, cameras, gadgets, news, and more. Before joining TelecomTalk, Karan has worked for numerous publications. He is a travel enthusiast when is not tinkering with new gadgets or phones. So stay in tune with Karan to get some exciting exclusive and interesting news which matters to you.

Subscribe
Notify of
guest
5 Comments
newest
oldest most voted
Inline Feedbacks
View all comments

Recent Posts

Oppo A95 Launched With a 4,310Ah Battery and Quad-Camera Setup

Oppo has expanded its smartphone lineup with the launch of its Oppo A94 5G phone in the European market. The...

Samsung Galaxy A32’s New Variant Receives Bluetooth SIG Certification

Earlier in January,  Samsung launched the Galaxy A32 5G’s launch in Germany. Only after a month and a half, the...

COAI Pushes for Complete Ban on Illegal Signal Repeaters: Report

The rising number of illegal repeaters and boosters in the country has forced the Cellular Operators Association of India (COAI)...