LG electronics said it will close its loss-making mobile phone business unit worldwide as the once pioneer brand looks to focus its resources in “growth areas” such as electric vehicle components, connected devices, smart homes, robotics, AI and B2B solutions, and platforms and services.
The South Korean firm said in a statement that its board of directors approved the decision today. The unsurprising move follows the company’s statement from January when it said it was reviewing the direction of its smartphone business.
LG, which maintained the No. 3 spot in the smartphone market in the U.S. for a long time, said it will continue to sell handsets until the inventory lasts and will provide software support for existing lineup of smartphones for a certain period of time that would vary by region.
The company said, the wind down of the mobile phone business is expected to be completed by July 31 although inventory of some existing models may still be available after that.