LG announces its exit from the smartphone market

Earlier this year, various rumors suggested that LG was negotiating the possibility of selling its telephony division, a division which over the past 5 years has lost more than $ 4.5 billion. These rumors suggested that Vingroup (a Vietnamese company which acquires the Spanish firm BQ) was among those who wanted to find their way into the United States.

America had become in LG’s last stronghold

, with a share of 10% in the last quarter of 2020. In the rest of the world, the share of this Korean company does not reach 2%. With these numbers and millions of dollars in losses, it’s only fitting that LG got tired of not finding a way to reach new users.

LG has officially confirmed that the company will close the smartphone division to focus its resources on other growth areas such as components for electric vehicles, smart devices, business solutions, robotics …

The closure of the company will take place end of July of that same year. Until now, it will continue to sell the phones until they are out of stock. From LG, they say the company will continue to offer support for its products for a period that will vary depending on the region.

The high-end phones that LG has released in recent years have had serious difficulties find a niche in the range dominated by Apple and Samsung

. In the mid-range, rivals it faced, also unsuccessfully, were Asian companies such as Xiaomi.

LG presented a roll up the phone, a phone unlikely to hit the market and represented a new way to deliver devices with large screens that fit in a pocket.

LG thus joins the list of veteran companies in the world of telephony which they have not been able to adapt to new times like Nokia (which gave its trade name to HMD) and BlackBerry (which did the same with TCL and this year with OnwardMobility).