Web Desk. LG has announced the end of its smartphone business, and so an era has come to an end. LG was once one of the world’s largest mobile phone companies, but Samsung and Chinese companies have eroded its popularity.
Earlier in January, a report said that after suffering losses for almost six consecutive years, LG may have decided to abandon its smartphone business. However, the company has now officially announced that the mobile business will be phased out in July this year and will now focus on smart home products.
Prior to LG, companies such as BlackBerry and Nokia had to abandon their smartphone business due to difficulties. Now the two companies are back in the market, but HMD has a Nokia brand license, while BlackBerry has shared something else.
When the first iPhone went on sale in 2007, LG was the 5th largest mobile phone company after Nokia, Motorola, Samsung, and Sony Ericsson.
Although LG was not among the world’s top five smartphone companies at the end of 2020, although Huawei is facing difficulties due to US sanctions, it is still one of the top five companies, along with Samsung, Apple, Xiaomi, and Oppo.
LG’s CEO took office in early 2020 and promised at the time that the Mobile Division would be made profitable in 2021. But he did not mention any plans in this regard, While the company’s unique phones such as Velvet and Wing could not be the center of attention.
LG hinted at introducing rollable phones in January 2021, but with the demise of the mobile phone business, the plan has been scrapped. LG’s mobile division has never been profitable since 2015, while it now faces competition from Samsung with several Chinese companies.
After running the mobile division for 26 years, LG’s board on Monday decided to close its mobile phone division completely. But the company has said it will retain about 3,700 workers who will be re-employed in other departments.