After many rumors came the official announcement: from today until July 31, gradually, LG will divest its mobile division and the production of smartphones.
Addio a LG Mobile: closes its doors the division dedicated to telephony. The Seoul-based company announced the announcement in a press release, highlighting its intention to focus its resources on other areas of interest, including components for electric vehicles, smart home and robotics, artificial intelligence and other services.
The news was not entirely unexpected. In fact, rumors of a possible downsizing of the sector, with the relocation of employees to other business sectors, had been growing for several months already. The CEO of LG himself, Kwon Bong-seok, had announced a change of course; among the possibilities, there was also the possibility of a sale, an option that apparently ended with nothing. To weigh on the decision the rather narrow earnings of the last five years, even more drowned by a last quarter of 2020 extremely disappointing with sales equal to 2% of the global market according to the research firm Counterpoint.
LG smartphones: what happens to owners
As stated by the company itself, LG signature smartphones will not suddenly disappear from physical and virtual stores around the world but, at least for a few months, will continue to be available on the market for purchase. In addition, all owners will be able to rely on LG's customer support for a period of time, depending on the geographical area of belonging.
The same goes for software updates: the releases dedicated to the devices of the brand will continue, waiting for the deadline for the conclusion of operations by the manufacturer. For this transition period towards closure, the company has ensured a plan of full support together with suppliers and business partners.
LG Mobile, what the future holds
According to LG Mobile's calendar, the final closure of the division will take place in the next four months, that is, by next July 31. As stated by the company itself, the address does not in fact exclude the possibility of a possible sale of part of the assets of the mobile sector after that date.
In any case, the company will not say goodbye entirely to the skills related to mobility, continuing the process of research and development of some systems - such as 6G - that could be applied in other areas of its business. The same goes for what has been achieved in the past: in fact, some technologies could find a space within products already on the market or future realization.
No information, however, on a possible sale of the patents of some of LG's most innovative devices, such as the roll-up smartphone seen at CES 2021 or the LG Wind already on the market.