LG’s smartphone business has been struggling for quite a while now, they have been struggling to sell their smartphones and make enough profit to keep the business afloat. This is because of the stiff and strong competition in the Android Market. Even Samsung has resulted to a strategy to survive by releasing their smartphone devices early. Apparently even with the release of the LG Wing could not abate this situation, and they have decided to cut their losses and end their smartphone segment.
LG has confirmed in a statement that they are ending and exiting the smartphone business which has been doing very poorly, they are now focusing their attention on other products. They have said they will be focusing on electric vehicle components, connected devices smart Home devices, robotics and artificial intelligence. LG is still very much in the ready fight, they just simply transition from making smartphones to making other kinds of products.
They have also confirmed that existing smartphone will continue to get support for a certain period of time in certain regions. There’s no word about if they will be laying off stuff because of this smartphone exit situation.
While this move has been a long time coming LG was not the first to exit the smartphone business. BlackBerry has already done that and outsourced their smartphone segment to order company. HTC and Nokia are also other companies that have also done that. LG is the latest and this bags the question who will be next to follow.