LG Electronics has confirmed that it is shutting down its smartphone business to focus on the firm’s growth areas.
The South Korean technology group says the move will enable it to focus resources on electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions.
The firm was once considered a pioneer of the Android operating system, collaborating with Google on the Nexus series in the early 2010s.
Current LG phone inventory will, however, continue to be available for sale and LG says it will continue to provide service support and software updates for existing customers.
The shutdown is expected to be completed by July 31 however the inventory of some existing models will still be available after that.
LG’s smartphone division lost billions in recent years. Its 2020 full-year earnings report released recently revealed that the company made a loss of USD 750.63 million (Kshs. 82.5 billion) in the whole year from its LG Mobile Communications, which houses its smartphones.
This is the first time a well-known smartphone brand is disappearing completely from the market, this follows a slew of high-