The South Korean mobile phone manufacturer will stop manufacturing mobile phones that has been characterized by losses in recent times. The shutdown of LG’s mobile phone sector is expected to be completed by the end of July.
The board of directors approved the move on Monday, LG Electronics said in a statement released in Seoul, Deutsche Press Agency (DPA) reported.
The statement adds that “LG’s 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,”
The decision to withdraw from mobile phone manufacturing has been on the table for some time until it was finalized recently.
Furthermore, LG wants to “continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas.” Core technologies developed during the two decades of LG’s mobile business operations are to be retained and applied to existing and future products, the company said.