LG confirms: We are "shutting down" mobile business

Unofficial reports that have been collaging the Internet for some time have proved correct – LG has officially announced that it is giving up operations in the mobile segment. LG's division has been in continuous losses for several years, which has so far reached billions of dollars.

IC: LG

Therefore, it was decided to stop producing mobile phones. Nevertheless, LG will remain somewhat in the mobile business, not on retail, but on a strategic level, primarily focusing on the development of 6G technologies. 

The company plans to complete all procedures around the closure of the mobile business by December 31st. July of this year. As for existing phones , they will still be on sale after that date, until stock is consumed, and users will also have the usual "after-sale" support and software updates available. However, the length of this will vary from region to region.

LG Wing, as the company's latest attempt to break through the mobile phone market proved, has failed to attract significant customer interest despite offering an interesting concept. This led to LG finishing last year with a share of the mobile phone market of just 1.7 per cent. However, this decision did not come without an attempt to fight.

 Late last year, LG announced it could cede production of its cheaper models to other companies, and tried to position itself in the market for 5G devices with a K92 model that cost about $400. There has even been talk of negotiating with Volkswagen AG and with Wingroup JSC companies for a sale, but those efforts, if any, have apparently failed.

The company's official statement said the strategic decision to exit the highly competitive mobile market allows the company to focus on other fast-growing segments, such as electric car parts, smart homes, robotics, artificial intelligence, as well as b2b solutions. Technologies developed during two decades of LG's mobile phone business will apply to other existing and future products of the company.