LG smartphone fans are in for some bitter news as the company has decided to officially shut down its smartphone business by 31 July, 2021. The company will no longer produce or market new phones going forward.
However, the company plans to keep its existing inventory in stocks beyond the closure date, besides continuing to offer software support for existing customers.
Reasons for LG Shutting Down Its Smartphone Business
As XDA Developers reports, there have been dozens of reports in the last fortnight hinting at LG’s plans to bid goodbye to its smartphone business in the wake of mounting losses and stiff competition. LG’s mobile division has been constantly reporting losses since Q2 2015 with the company registered a massive loss of $751 (USD) million in 2020.
In its recent newsroom release, LG confirmed the closure of its mobile division as the decision was formally approved by the company’s board of directors on Monday.
Although LG was in constant talks with several potential buyers including Google, Facebook, Volkswagen, and Vietnam’s Bin Group in the recent past, the acquisition proposal was never finalised or concluded. Eventually, LG had no choice but to abandon the smartphone market altogether.
The initial reports of LG’s probable shutdown plans, had emerged in January. At the time, the company stated that it was “reviewing the direction of its mobile business with all possibilities open.”
LG’s First Rollable Phone
There is still no word on the launch of LG’s first rollable phone, which has been in development for a long time. However, the company spokesperson had revealed recently that it will be launching the phone later this year.
LG Promises to Support Existing Customers
On a positive note, the company has promised to continue selling its existing inventory while also offering software support for a certain period based on the region. LG may not be a leading brand in the smartphone industry, but it has made some bold moves while trying to innovate with new concept phones like the LG Wing.
A Brief History of LG
LG started its Android journey way back in 2009 with the launch of GW620 running Android 1.5 Cupcake out-of-the-box. It was also the first OEM phone maker to offer ultra-wide-angle camera on a mobile phone with LG G5.
It was one of the few OEMs to produce Quad DAC and powerful stereo speakers for audio enthusiasts. LG gained popularity among masses for producing some iconic phones with Google like the Pixel 2 XL, Nexus 4, Nexus 5 and Nexus 5G.
LG will be remembered long enough for exploring new avenues and offering some iconic phones in its good times.