LG Electronics Inc. has announced that it is shutting down its mobile business unit worldwide, after recording total losses of about $4.5bn in almost six years.
In its official statement, LG said the announcement had come after its board of directors approved the decision on Monday.
The company said the wind down of the mobile phone business was expected to be completed by July 31 although inventory of some existing models might still be available after that.
According to LG, stepping away from the mobile phone business will enable the company to focus resources in areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.
While it would not be manufacturing new phones, it noted that it would continue to provide support and software updates to existing customers for a certain “period of time” which would vary by region.
“LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level,” the company stated.
The South Korean company added that it would be using its mobile expertise and mobile related technologies like 6G in other businesses, existing and future products.
LG had already warned about the fate of its phone business in January, saying that it was looking at all options, including a potential sale of the unit.
The decision to call it quits on Monday was met with an outpouring of nostalgia on social media, where users shared photos of their first LG phones and reminisced over the company’s willingness to innovate.