South Korea’s LG Electronics said on Monday it will wind down its loss-making mobile business permanently. This decision comes days after LG showcased its ambitious rollable phone at the CES 2021.
The company will end production and sales of mobile phone products on July 31, However the existing LG phones, such as the Wing, Velvet, Q-series, W-series, and K-series, will continue to sell but that would be until the inventory exists.
Reason
Since Q2 2015, LG’s mobile division has been continuously reporting losses. In 2020, the mobile division registered a loss of $750.60 million.
Accumulated losses & Benefits
The company has logged nearly six years of losses totalling some $4.5 billion (roughly Rs. 33,010 crore)
The dropping out from competitive smartphone sector would allow LG to focus on growth areas such as electric vehicle components, connected devices and smart homes.
Journey of LG
LG’s Android journey began in 2009 with the LG GW620, running Android 1.5 Cupcake out-of-the-box, and is seemingly ending with the LG Wing, which was one of the most innovative smartphones of 2020.
If there’s one thing that stood out about LG as a company, it’s that they were never afraid to try something different and bold and kept on experimenting with new concepts and form factors.
LG was the first OEM to introduce an ultra-wide-angle camera on a mobile phone (LG G5) and one of the few OEMs that catered to audio enthusiasts with features like Quad DAC and powerful stereo speakers.
During its journey, LG also teamed up with Google to produce some of the most iconic smartphones of our time, such as the Nexus 4, Nexus 5, and Nexus 5X. LG also made Google’s Pixel 2XL.
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