LG is Withdrawing from the Smartphone Market

LG is the first smartphone maker to completely withdraw from this market. The company announced that instead of the loss-making sector, it will focus on household appliances and televisions.

The reason for the closure of this sector is the large losses. In the last 6 years, the production of smartphones has cost LG $ 4.4 billion. Even third place in North America failed to save this part of the company. Existing phones will remain on sale until sold out, although knowing that the company is retiring will likely reduce interest.

LG estimates that it is wiser to invest these funds in the development of the Internet of Things, parts for electric vehicles, robotics, artificial intelligence, and smart home devices.

Although it is retiring from the development of smartphones, LG will continue to develop technology that is common to other sectors, such as the 6G network.

In the past they were one of Google's partners in the development and production of Nexus devices. This year they had 10% of the market in North America, the phones for a long time were in third place after sales in the US market.

The official closing of this department will be completed by July 31. It is difficult to guess whether LG phones will reappear in the future. Some brands like Nokia and Blackberry still exist even though they now have new manufacturers. Given that there have already been rumors that LG wants to sell this division, the return of the brand with a new manufacturer will not be a surprise.