LG is exiting the smartphone business, the business has confirmed. The decision can “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, ” LG stated in a declaration .
Present phones will remain on sale, plus LG says it’ll keep support its products “for some time which will vary by area. ” LG’s statement says it expects to have finished the business’ closure right at the end of July this year.
The move had been rumoured for several months, following the division’s huge losses over the past five years. Once considered a rival to fellow South Korean manufacturer Samsung, LG’s recent high-end smartphones have struggled to compete. In contrast, its more affordable handsets have got faced stiff competition from Chinese rivals.
Reports that LG continues to be considering exiting smartphones have been around since the start of this year . In March, reports revealed that the company had tried to find a customer for its smartphone business, but talks were unproductive, plus it could shut down the division.
LG launched a series of eye-catching devices with unusual form factors, but none of these features was useful to turn the mobile phones into mainstream hits. At the same time, the company’s more traditional mobile phones fell behind their opponents in core areas like camera performance.
LG joins a long list of high-profile device makers to give up about smartphones over the years, including Htc, whose brand lives on atop handsets made by HMD, Blackberry and HTC.
Source: The Verge