LG quits manufacturing and sales of its smartphone division- Check out why!
It was only six years back when the mobile phone business of LG made some profit.
LG is getting out of the competitive business of making smartphones. On Monday, the South Korean tech giant announced that it would close down its mobile phone unit after years of losses. The division is expected to be wound down by July 31, the existing LG phones, such as the Wing, Velvet, Q-series, W-series, and K-series, will continue to sell but that would be until the inventory exists.
LG said it will provide service support and software updates for customers of its existing mobile phones for a period that will vary by the customer’s location. This means that it is possible the Velvet in India may not get a software update at the same time as European customers would receive it. The company will work “collaboratively” with suppliers and business partners throughout this period of closure of the mobile division.
The division is expected to be wound down by July 31, although the company may continue to sell some of its existing models after that, according to LG Electronics. But the company’s devices have since dwindled in popularity, particularly as Chinese upstarts such as Xiaomi and Oppo have surged around the world. As of last year, LG was no longer even among the top seven players globally.
The decision to call it quits on Monday was met with an outpouring of nostalgia on social media, where users shared photos of their first LG phones and reminisced over the company’s willingness to innovate. For about six years, LG’s smartphone business has been downfallen, even though the company didn’t leave any opportunity in fighting back its rival Samsung and Chinese players with genuinely good phones, such as the Velvet. It was only six years back when the mobile phone business of LG made some profit.