LG, came to the tiring decision to permanently close its mobile section. The news had been in the air for some time and we had anticipated something about it a few weeks ago.
Unfortunately, in the last five years LG has experienced an increasingly significant decline in terms of smartphone sales; hence the sad decision to permanently close a section that creates enormous economic imbalances for the company.
They were once considered Samsung's first competitors, but LG's recent high-end smartphones have failed to appeal to the masses, while its entry-level devices have faced tough competition from Chinese rivals.
The decision "will allow the company to concentrate resources in growth areas such as electric vehicle components, home automation, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services "LG said in a press release.
Existing smartphones will remain on sale and continue to be supported for a period of time that will vary between different countries.
The company did not add anything about possible employee layoffs except that "employment details will be determined locally". By July, LG will completely dispose of all activities dealing with the mobile section.
The future will never see the light
The company, before coming to the decision to permanently close the mobile division, had previously stated that it would make an effort to make its smartphone division profitable in 2021, which it apparently failed to do.
Today's news means that the rollable phone from LG never see the light of day. That model, along with the OLED TV with the same technology, had been the focal points of the entire CES 2021.
LG has been a milestone in the phone industry for many years. Before Steve Jobs reinvented how to use that technology, the Korean company was among the most influential on the market. But technology changes very quickly and without a specific address. If you can't keep up and don't know how to re-invent something innovative every now and then, inevitably there is nothing left to do but to discard those clothes and hang them up.
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