Johannesburg, April 6, 2021 – LG Electronics Inc. (LG) announced the closure of its mobile business unit. The decision was approved by its board earlier today.
LG’s strategic decision to exit the extremely competitive mobile phone industry will allow the company to focus its resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.
The current inventory of LG phones will continue to be available for sale. LG will provide service support and software updates to customers of existing mobile products for a period which will vary by region. LG will work with suppliers and business partners throughout the shutdown of the mobile phone business. Details of employment will be determined locally.
Going forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed over two decades of LG’s mobile business operations will also be retained and applied to existing and future products.
The liquidation of the mobile phone business is expected to be completed by July 31, although inventory of some existing models may still be available afterwards.