SEOUL, April 5, 2021 — LG Electronics Inc. (LG) announced that it is closing its mobile business unit.
The decision was approved by its board of directors earlier today, according to an official press release.
Stepping Away from Phone Manufacturing and Sales Enables Company to Focus on Growth Sectors Including EVs, IoT and B2B Solutions the company said.
Do not expect to see new LG smartphones in 2021 like the rumored LG V70 ThinQ, LG G10 or LG Velvet 2, as the company is closing its entire mobile business unit. We probably won’t see the LG Rollable the company teased at CES 2021 and confirmed would be released in 2021, either.
LG calls the move a “strategic decision to exit the incredibly competitive mobile phone sector.”
Closing down the entire mobile business unit means LG will be free to focus resources on growth areas, citing a whole list of sectors where its brand is better positioned: “electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.”
In the statement, LG reveals it’ll “leverage its mobile expertise and develop mobility-related technologies such as 6G” just as most people are getting 5G phones.
The upside is that if you own an LG phone or want to buy the current LG phones (the LG V60 or LG Velvet) inventory will remain on sale in stores and online, and service support and software updates will continue for existing LG phone customers. There just won’t be any new LG smartphones going forward.
LG says the wind down of its mobile phone business is expected to be completed by July 31, although you’ll probably still be able to buy an LG phone after that date.
This comes as no surprise to most in the mobile phone industry as LG has often pushed the envelope of smartphone technology in an attempt to connect with customers and clinch the top spot for smartphone innovation.
Some examples of LG’s smartphones that failed to connect with customers includes the LG Wing 5G or Dual Screen on the LG G8X/LG V60, flexible displays (LG G Flex 2), leather backs (LG G4), gimmicky motion sensors (LG G8), and dual screens (LG G8X) were tepidly received.
LG never had the competitive strength to offer better prices in key regions like the US and Europe, when Samsung and Apple consistently beat it on deals.