LG, the South Korea-based electronics manufacturer, will soon stop producing new mobile phones worldwide, according to a press release from the company early Monday. “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 said in a statement.

Here's what LG stated:

LG is considering exiting the smartphone market in 2021. After losing around $4.5 billion over the past five years, LG’s smartphone business has been struggling to compete with rivals. Now LG CEO Kwon Bong-seok has notified employees that the company is considering making big changes to its smartphone business.
The Korea Herald reports that Kwon Bong-seok sent out an internal memo to staff on Wednesday, hinting at a change in direction for LG’s phone business. “Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice,” says an LG official in a statement to The Korea Herald.
“The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.”

LG confirmed the internal memo was genuine in a statement to The Verge, noting that nothing has been decided yet. “LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021,” says an LG spokesperson. “As of today, nothing has been finalized.”

One last LG phone?

Samsung, Huawei, Xiaomi, Vivo, and Apple all continue to dominate worldwide smartphone shipments, according to IDC. LG is now turning its focus to its Rollable phone, in an effort to differentiate it from the competition. LG teased the Rollable device again at the Consumer Electronics Show last week, with a “unique resizable screen” that extends from a phone to become a small tablet display.


LG has promised its Rollable device is real and will launch in 2021, but with the company reconsidering its mobile plans it could be one of the last LG phones we’ll see.

The big question: Software and security updates?

“LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region,” the company said. “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.”

LG insists that it will continue to have a presence in the mobile data market, since plenty of other products now talk to the internet. And if you’re excited about getting 5G but with one number higher, LG will be there.
“Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products,” the company said.