LG is quitting the smartphone business. The company, in a statement on Monday, confirmed the same saying that the decision will “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.”
The move, which has been rumored to occur for months, follows their smartphone division’s losses over the past 5 years. Although hoping to make the division profitable in 202, LG’s recent range of high-end smartphones struggled to compete in the economy. The once rival to fellow manufacturer Samsung, LG’s more affordable handsets have faced stiff competition from Chinese rivals.
Advertisement
The news also means that LG’s newest model, a rollable phone, is unlikely to be seen by the public. The device, which was showed off at this year’s virtual CES, was to be launched later this year.
The company says that it will continue to support its products for s certain time period, though this will vary by region and that existing products will remain on sale. However, any news of layoffs due to the move has yet to be determined.
Reports of the move have been around since the beginning of the year, although these were branded as false by spokespersons of the company. In March, however, reports had emerged of the company’s efforts to find a buyer for its smartphone business, but that talks had stalled and it could instead shut down the division.
LG joins a long list of high-profile device makers to give up on smartphones over the years, although many of the brand names have stuck around on devices made by third-party manufacturers.