LG Electronics will refuse to release smartphones
LG Electronics said it will liquidate its smartphone division due to its unprofitableness. This will happen before July 31st. The manufacturer intends to focus on more promising areas.
LG will work on electric vehicle parts, connected devices, smart home technologies, robotics, artificial intelligence technologies, b2b solutions, as well as platforms and services.
The manufacturer will sell the remnants of already released smartphones. LG will provide service support and software updates for them for a specified period of time.
The company's board of directors has already approved this decision.
LG noted that the smartphone business became unprofitable in the second quarter of 2015. For the entire period, the size of the loss, according to Dow Jones, amounted to $ 4.4 billion. In 2020, sales of smartphones amounted to only 8% of the manufacturer's sales.
The company now expects that the phasing out of smartphones will lead to a reduction in revenue in the short term, but will improve its financial position in the long term.
Previously Samsung Electronics Co. warned that it may refuse to release a new line of Galaxy Note smartphones this year due to the global shortage of semiconductors.