LG has officially announced the closure of its mobile phone division. The company had earlier in the year hinted at plans to pull the plug on its smartphone business.
“LG has recently made the difficult decision to close its mobile business to focus on other businesses that will provide new experiences and value for the consumers.” the company said in a notice on its website.
Last month, LG sent out an internal memo to staff, saying it was considering shutting down the mobile phone division after failing to secure a sales deal. The company had been in talks with two potential buyers.
LG says that its products will still be available while supplies last.The volumes vary from country to country.
“We will fully honor our product limited warranties, and will also continue to provide software and security updates as well as replacement parts in accordance with applicable regulations and contractual obligations.” LG further said, assuring its clients.
LG’s Smartphone business has reportedly lost the company about $4.5 billion in the last five years. The losses have been attributed to high competition in the Smartphone market with LG trailing after giant manufacturers, Samsung, Apple, Huawei among others.
LG is also reported to have halted the development of its rollable phone which was slated for release in the first half of this year.
LG attempted multiple times to compete with Samsung and Huawei through their flagship phones G7, the V40, the G8, and the V50. However, despite promising “wow factors”, LG has not been able to impress users enough to clinch the smartphone market.
The company said it will now focus on its other smart technologies “as it continues to deliver a wide range of innovative products and services that make life better.”