LG Electronics mentioned on Monday that will probably be closing its loss-making cellular enterprise unit.
The choice was authorized by the board on the identical day. The exit is anticipated to be accomplished by July 31.
LG’s present cellphone stock will proceed to be accessible for gross sales. The corporate will even proceed to fabricate cellphones as much as the tip of Might to maintain its dedication with telcos and different companions.
The South Korean electronics maker mentioned it could present service assist and software program updates for patrons of present cellular merchandise for a time frame, which can fluctuate relying on area.
In accordance with LG, exiting the “extremely aggressive” cell phone sector would allow the corporate to focus its sources in different progress areas reminiscent of electrical automobile elements, robotics, and synthetic intelligence.
And regardless of the closure of its cellular enterprise unit, it is going to proceed analysis and growth into core cellular applied sciences reminiscent of 6G, the South Korean firm mentioned.
The applied sciences that had been developed in the course of the firm’s twenty years of cellular enterprise operation can be retained and utilized to present and future merchandise, it added. Staff of the cellular enterprise unit can be relocated to different enterprise models.
In January, LG introduced that it was reviewing the course of its cellular enterprise, including that it was open to all prospects. As of the fourth quarter final yr, the enterprise unit had recorded 23 consecutive quarters of loss.