LG is officially tapping out of the the “incredibly competitive mobile phone sector,” the company announced Monday following the approval of its board of directors.
The company, which was once a major player in the smartphone business in early 2010s, is hopeful that the move will allow it to grow in other areas, such as artificial intelligence, robotics, smart homes, and electric vehicle components.
“LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region,” the company wrote in a release. “LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level.”
After struggling to compete with giants like Apple and Samsung, the South Korean company projects that its phone side of the business will be a thing of the past by July 31, although certain products may still be sold in stores for a while after.
The decision to axe phones from the company’s offerings may not come as a surprise to those who have been following along. Back in 2007, LG was the fifth biggest phone vendor, just following Nokia, Motorola, Sony Ericsson, and Samsung. Six years later, it was in the top three of the world’s top smartphone makers, according to Strategy Analytics. Last year, however, it couldn’t crack the top seven phone vendors globally, according to Counterpoint Research.
