LG has confirmed this Monday to its shareholders’ meeting that it will stop developing new mobile phones. Therefore, the South Korean brand leaves the smartphone industry after several years of losses, less influence and the creation of products that did not compete against those of Samsung, Apple or Xiaomi.
The effective date for the closure of the mobile business is scheduled for July 31, 2021, as confirmed by the company.
They leave the mobile world to dedicate more resources to other areas
The news has been made public with a statement sent by the company, where they point out that “this move will allow LG to dedicate more resources to other growing areas, such as vehicle components, connected devices, smart homes, artificial intelligence and B2B solutions and services ”.
LG will not attend the Mobile World Congress either.
The decision is linked to the suspension of the firm’s attendance at the next edition of the Mobile World Congress in Barcelona, which is expected to be held at the end of June.
What are LG’s flagship products?
LG is a leader in the manufacture of OLED screens and one of its star products in consumer technology is the television, where its business continues to grow and only has Samsung as direct competition.
The changing mobile market
After LG’s decision, many experts predict the end of other brands, such as Sony, which continues to launch phones from its Xperia range and try to attract very specific users to keep the business afloat.
The mobile market is very changing and with increasing digitization, many brands must rethink their manufacture. For example, Nokia was fundamental in the beginnings of mobile telephony, but the arrival of Apple to the market left it in the lurch.