LG discontinues smartphone business after years of mounting losses, the company confirmed on Monday, announcing that it will shut down its mobile phone unit entirely. The move lets LG redirect its energy toward electric vehicle components, artificial intelligence, connected devices, smart homes, and business-to-business solutions. For longtime fans of the brand, this marks the end of an era in the phone market, closing the book on a division that once competed with the biggest names in mobile.
The announcement, made on Monday, brings clarity to months of uncertainty. LG framed the closure as a strategic pivot rather than a simple retreat, explaining that exiting the highly competitive mobile arena frees up resources for product categories where it sees stronger long-term growth potential.
Why LG Discontinues Smartphone Business
The decision was not a surprise to industry watchers. LG had been incurring losses for 23 consecutive quarters, stretching all the way back to the second quarter of 2015. By the fourth quarter of last year, accumulated losses had reached $4.4 billion. In 2020, LG shipped a total of 6.5 million units, and its global market share stood at just 2 percent in the third quarter of that year.
Earlier in the year, LG said it would evaluate the future of its smartphone business and weighed several options, including selling the unit outright. The company held talks with Google, Facebook, Volkswagen, and Vietnam's Bean Group about a possible sale, but none of those deals reached a successful conclusion. With no buyer in place, a full shutdown became the most viable path forward, allowing LG to stem its losses rather than continue propping up an unprofitable unit quarter after quarter.
Timeline and What Happens Next
According to LG, the closure of the mobile phone business is expected to be completed by 31 July. Even after that date, stock of some existing models may still be available as the company sells through remaining inventory. LG has stated it will continue to make phones available to clear its stock, and it will keep providing service support and software updates to customers for a fixed period.
Reports indicate that LG has already begun shifting some employees from the phone division to other business units, signalling a firm commitment to the wind-down. With this formal announcement, the long-running speculation about the fate of LG's mobile arm has finally come to rest.
Key Facts at a Glance
| Specification | Details |
|---|---|
| Business unit closing | LG mobile phone division |
| Expected completion date | 31 July |
| Consecutive loss-making quarters | 23 (since Q2 2015) |
| Accumulated losses | $4.4 billion (as of Q4 last year) |
| Units shipped in 2020 | 6.5 million |
| Global market share | 2 percent (Q3 2020) |
| New focus areas | EV components, AI, connected devices, smart homes, B2B |
What This Means for LG Owners
If you currently own an LG handset, you are not left stranded. LG has committed to ongoing service support and software updates for a defined period, so existing devices will continue to function and receive maintenance in the near term. Buyers may also still find some models on shelves as remaining stock is sold off.
