LG Electronics, a South-Korean-based technology company set to shut down its mobile phone production business, after making a huge loss for the past five years.
This was announced after a board meeting on Monday, in Seoul. A statement was released to this effect. The shutdown is said to be completed by July 2021.
"LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, and artificial intelligence.
“It will also focus on business-to-business solutions as well as platforms and services,
“LG want to continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas’’.
While stating this, the technological assets acquired by the mobile phone division will be kept and used for existing and future products by the company.
For some years, the mobile division has recorded nothing but loss, having to compete with other mobile phone brands. While existing phones will remain on sale, the company didn't comment on any possible dismissal of staff from this unit.
The exit rumor was first heard early in the year but was debunked by a spokesperson from the company. The company had tried to look for buyers for the mobile division, having made a loss for the past five years and having to compete with Asia's top electronic brand, Samsung.
This was announced after a board meeting on Monday, in Seoul. A statement was released to this effect. The shutdown is said to be completed by July 2021.
"LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, and artificial intelligence.
“It will also focus on business-to-business solutions as well as platforms and services,
“LG want to continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas’’.
While stating this, the technological assets acquired by the mobile phone division will be kept and used for existing and future products by the company.
For some years, the mobile division has recorded nothing but loss, having to compete with other mobile phone brands. While existing phones will remain on sale, the company didn't comment on any possible dismissal of staff from this unit.
The exit rumor was first heard early in the year but was debunked by a spokesperson from the company. The company had tried to look for buyers for the mobile division, having made a loss for the past five years and having to compete with Asia's top electronic brand, Samsung.