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One-Time Pioneer LG Electronics to Close Smartphone Business

  • Focusing resources on growth areas like EVs, robotics and AI
  • LG failed to turn a profit in intensely competitive market
LG Unveils G7 ThinQ Smartphone
Photographer: SeongJoon Cho/Bloomberg
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LG Electronics Inc. is shutting down its loss-making mobile communications unit in a move to streamline operations and focus on future projects such as electric vehicle components.

The company will end production and sales of mobile phone products on July 31 to focus resources on growth areas including EVs, smart homes, robotics and artificial intelligence, it said in a statement. Phones constituted 8.2% of LG sales last year and there will be a short-term loss of revenue but the company expects the closure to be financially favorable in the long run. It’ll strength its car-parts business and continue to develop mobile technologies such as sixth-generation networking and cameras, it said.