Smartphone pioneer LG Electronics will close its mobile unit later this year to focus its efforts on higher-growth companies.
In a statement on Sunday evening, the South Korean company said it will cease its cellular business until July 31, although existing inventory may still be available for sale after that. LG announced that it will continue to provide service support and software updates for its existing mobile phones for an indefinite period of time.
“LG’s strategic decision to leave the incredibly competitive wireless sector allows the company to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions as platforms and Services, ”said the company.
LG
066570, -1.26%
said it will continue to develop mobile technologies like 6G “to further strengthen competitiveness in other business areas”.
LG was once and was one of the top-selling smartphone manufacturers in the US one of the first to introduce Google’s Android Operating system.
Smartphones made up around 8% of the company’s sales last year. However, smartphone sales were sluggishand the segment had posted losses for nearly six years.
