LG closes its smartphone business

LG has closed its mobile division after months of speculation.

The South Korean telecommunications hardware manufacturer announced on April 5 that it was starting to shut down its mobile business unit, according to a decision approved by its board of directors.

It closed three months after LG was assured by IT World Canada.

In an emailed release, LG described the smartphone market as "incredibly competitive". Instead it will divert resources for its other sectors, including electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business solutions, as well as platforms and services.

During the closure process, LG will continue to sell the rest of its inventory "while making final supplies." In Canada, LG will honor a 1-year limited warranty with the purchase and provide service parts for at least two years from the date of purchase.

The company will also release two-year software updates for select models. It has not provided a complete equipment list.

LG's mobile accessories such as Bluetooth headsets are not affected by this closure.

LG's smartphone sales have plummeted since 2015. According to Statista, the company sold 59.5 million units in 2015. This figure shrank to 28.5 million units in 2019. Samsung, in contrast, is the world's largest phone seller by volume, with sales of 323 million units. 2015 and 296.9 million units in 2019.

The company has attempted to beat the recession several times, including releasing detachable dual-screen designs such as the LG G8X ThinQ Dual Screen and V60 ThinQ Dual Screen.

In August 2020, LG released a no-frills phone with medium specs to counter LG Velvet in the middle order. The phone saw lukewarm reception and would become LG's last phone.

By July 31, the wind is expected to fall.