South-Korean tech powerhouse, LG, is exiting the smartphone business. According to the firm, this move “enable the company to focus resources in 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.”
Existing phones will remain on sale, and LG says it’ll continue to support its products “for a period of time which will vary by region.”
The company hasn’t said anything about possible layoffs except that “details related to employment will be determined at the local level.”
LG says it expects to have completed the business’ closure by the end of July this year.
The move has been rumored for several months, following the division’s huge losses over the past five years.
Once considered a rival to fellow South Korean manufacturer Samsung, LG’s recent high-end smartphones have struggled to compete, while its more affordable handsets have faced stiff competition from Chinese rivals. The company had previously said it hoped to make its smartphone division profitable in 2021.
This also means LG’s long-teased rollable phone is unlikely to ever see the light of day.
The last time the company showed off the device was back at this year’s virtual CES when the company insisted that the device was real and would be launching later this year.
