This Monday, the South Korean tech company officially announced that they are shutting down their smartphone business.
The strategic decision is prompted by the “incredibly competitive” mobile phone market, as well as the mounting losses the company has faced recently. LG’s smartphone division recorded $4.5billion (£3.3billion) in losses over the past six years.
LG says that the decision to exit the mobile market will enable the company to invest in other developing areas such as smart homes, robotics, and artificial intelligence, among others.
The tech giant also has plans to work on a 6G network while continuing to focus on the home appliance market and its joint venture with Magna International in the electric vehicle components industry.
LG was always considered a pioneer in the Android world, even making it among the top three smartphone manufacturers worldwide in 2013. In fact, it is still the third most popular in North America. However, the demand for their mobile devices has waned recently, especially as Chinese brands Xiaomi and Oppo surged on the global market.
In 2020, the company shipped 28 million smartphones, whereas its rival Samsung is believed to have sold over 250 million. Apple, on the other hand, is rumoured to have shipped 90.1 million units in the last quarter alone.
The Monday announcement received a downpour of nostalgic posts on social media, with people sharing pictures of their first LG phones and praising the company’s past commitment to innovation, both in terms of design and features.
LG’s smartphone division won’t wind down until July 31. The company will not release any new phones until then, but it might continue to sell its existing models.