LG Quits Mobile Business, Joins List Of Fallen Titans

This is a sad day for the technology industry because LG has officially announced that it will be closing down its mobile business. Earlier in the day, its board approved the move as a way to focus on its resources on more profitable areas. This includes electric vehicle components, connected devices, robotics, artificial intelligence and business-to-business solutions.

LG has had an interesting history in the mobile sector. It’s phones used to have some of the best screens and technology in the market. It’s G series of phones were particularly interesting as they featured svelte designs, great hardware and large screens with qHD resolutions. However, over the past 5-6 years, the company gradually fell behind the competition.

Confusing model nomenclature and bizarre design decisions may have played a part in alienating consumers. However phones like the LG Velvet and WING helped rekindle some of the magic that the company was revered for. Unfortunately, that wasn’t enough to keep its business going. The entire division will wind down completely by 31st July 2021.

The company provided a very vague explanation regarding how long it will continue to support current customers:

LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business.

According to the company, it will continue to leverage the technology and experience gained from the mobile sector and channel it towards mobility-related technologies such as 6G. Despite how heartbreaking this news may be, none of us are actually surprised by LG’s decision. The writing has been on the wall for quite some time.

As a former LG smartphone owner, it was especially painful to watch the company drift into relative obscurity over the last few years. Unlike arch rival Samsung, LG simply couldn’t compete in the highly volatile mobile consumer market especially since Chinese players like Xiaomi, Oppo and Realme continue to eat away at established players’ market share.

LG joins a long list of tech juggernauts who at one point were considered titans of industry. Names like BlackBerry, Microsoft and Nokia once commanded the lion’s share of the mobile market, but like LG, they too witnessed first hand how tough it can be to maintain a sustainable business model.

As the curtains closes on LG’s mobile business, we can take some solace in knowing that its valuable contribution in the past decade helped spur smartphone innovations that wouldn’t have happened without the company.