South Korean electronics giant, LG, has announced its decision to shut down its mobile phone business worldwide.
Reuters’ sources quoted the firm, whose cellphone business has reportedly been making losses, as saying yesterday that it would now be concentrating on electric vehicle components, connected devices, smart homes, robotics, AI and B2B solutions, and platforms and services.
The South Korean firm was quoted as saying in a statement that its board of directors approved the decision yesterday.
The unsurprising move follows the company’s statement in January when it said it was reviewing the direction of its smartphone business.
LG, which maintained No. 3 spot in the smartphone market in the United States for a long time, said it would continue to sell handsets until the inventory lasts, and would provide software support for existing lineup of smartphones for a certain period of time that would vary by region.
LG Electronics, a part of the LG Corporation, is a multinational electronics company headquartered in Seoul, South- Korea. South Korean businessman, Koo In-Hwoi, founded the company then known as Goldstar in 1958.
The company changed its name to LG Electronics after a merger with Lucky Chemical in 1995. LG is considered one of the leading consumer electronics companies in the world —with around $52.555.76 billion in global revenue as of 2020.
In 2019, South Korea, North America, Europe, and Asia made up the company’s most important markets, with close to 85 per cent of total revenue coming from these regions. LG stores in Nigeria, owned by Mohammed Fouani, do not deal so much in smartphones as they do household electronics.
However, Fouani had been a huge promoter of the LG W31-W41 Pro, lg k62-k92 and LG Express phone brands in Nigeria. Our correspondent gathered, however, that the supply of LG phones were very limited in Fouani’s key distribution centers in Lagos. Fouani, meanwhile, has partnered other brands, including Hi- Sense and Maxi for his television, phones, fridges and other household appliance distribution.