As post-COVID business begins to take shape, the adverse effects of the pandemic are slowly manifesting. It is at this time that companies are tumbling due to losses accrued, or for the failure of keeping up with the demands. Electronics company LG is one of these. Even after so much effort to ensure the company remains afloat, it has announced that it will exit the mobile phone business globally.
What led to the LG mobile downfall?
It is never an easy venture to run a phone business. And, it is a hard one to make profitable. At the very least, we saw how much effort LG had put in for years, despite failing to hit.
The company says in a statement that all current LG phones on the market will continue to be available for sale. The company will also continue providing service support and software updates to existing customers. However, this will vary by region.
“LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.”
The company says the decision did not come yesterday. For several months it was reviewing its options, including a potential exit from the business. It has come and we have to say goodbye. The entire closure process of the LG mobile phone business is expected to be completed by July 31. Although, “inventory of some existing models may still be available after that.”