LG closes its smartphone business

LG closed its mobile division after months of speculation.

The South Korean telecommunications hardware manufacturer announced on April 5 that it’s starting to wind down its mobile business unit, as per an approved decision by its board of directors.

The closure came just three months after LG assured ITBusiness.ca that it had planned to rebuild and expand its smartphone business.

In an email press release, LG described the smartphone market as “incredibly competitive.” It will instead divert resources to its other areas, including electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business solutions, as well as platforms and services.

The LG G8X ThinQ Dual Screen smartphone.

During the closure process, LG will continue to sell off its remaining inventory “while supplies last”. In Canada, LG will honour the 1-year limited warranty with the purchase and will provide service parts for a minimum of two years from the purchase date.

The company will also release software updates for two years for select models. It has not provided the full devices list.

LG’s mobile accessories such as Bluetooth headsets are not affected by this closure.

LG’s smartphone sale has dwindled since 2015. According to Statista, the company shipped 59.5 million units in 2015. That figure shrunk to 28.5 million units in 2019. Conversely, Samsung, the biggest phone seller in the world by volume, sold 323.3 million units in 2015 and 296.9 million units in 2019.

The company attempted to beat the slump multiple times, including releasing detachable dual-screen designs such as the LG G8X ThinQ Dual Screen and the V60 ThinQ Dual Screen.

In August 2020, LG released the LG Velvet, a no-frills phone with moderate specs, to contest in the midrange. The phone saw lukewarm reception and would become LG’s final phone.

The wind-down is expected to conclude by July 31.

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Jim Love, Chief Content Officer, IT World Canada

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Tom Li
Tom Li
Telecommunication and consumer hardware are Tom's main beats at IT Business. He loves to talk about Canada's network infrastructure, semiconductor products, and of course, anything hot and new in the consumer technology space. You'll also occasionally see his name appended to articles on cloud, security, and SaaS-related news. If you're ever up for a lengthy discussion about the nuances of each of the above sectors or have an upcoming product that people will love, feel free to drop him a line at [email protected].

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