After years of trying to turn his fortune upside down, LG of Korea said it would get out of the mobile phone business globally.
Between lines: The telephony business is difficult to make profitable for all players except the biggest ones. LG was one of those, but it hasn’t been for many years and had no clear path to change it.
- “LG’s strategic decision to exit the incredibly competitive mobile phone industry will allow the company to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and solutions from business to company, as well as platforms and services, ”the company said in a statement.
- LG had said a few months ago that it was reviewing its options, including a possible exit from the business.
Of note: LG said it will take until July to finish its business and sell the current inventory.
- LG said it will continue to maintain and support the phones for a period of time.