LG WITHDRAWS FROM THE MARKET OF SMARTPHONE PRODUCERS

LG has announced the end of smartphone production. The fact is that the market has faced a high level of competition. Moreover, the activity has become unprofitable.

The last LG smartphone will be released on July 31, 2021 - after that production will be stopped, but the devices will be on sale for some time. The company believes that the measure will improve their overall financial condition. At first, the revenues will decrease slightly, but in the future, the withdrawal from the market of smartphones will have a beneficial effect on development of the company.

LG has been counting losses over the sale of smartphones since 2015.

In 2020, the company recorded almost 4.5 billion losses. Insiders reported that LG planned to sell the production of smartphones to other large companies, but the deal did not materialize in the end.

In the global market, LG smartphones occupied about 2%, over the past year, 23 million devices were sold. Now the company is focusing on other products, in particular, electric vehicles, robotics, etc. It was also noted that despite the curtailment of the production of mobile phones, LG continue to provide service support for already sold will devices and regular software updates.

As for the employees of the downsized division, the representatives of LG promise to resolve all the employment issues. We should recall that the company is based in South Korea. It has been producing mobile devices since the 90s.