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LG Electronics Closes its Mobile Division after Losing Billions

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LG Electronics Closes its Mobile Division after Losing Billions

South Korean tech giant LG Electronics has announced its closing its mobile division after it lost billions in recent years. LG said decision to exit the mobile phone sector will enable the company to focus on other resources.

LG will be now focus on 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 wind down of the mobile phone business is expected to be completed by 31 July. LG Electronics said inventory of some existing models may still be available after that. It also said they provide service support and software updates for customers of existing LG smartphone mobile products for a period of time which will vary by region.

LG Electronics will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. As for the employment status of those in LG’s mobile phone business, the company said details will be determined at the local level.

Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.

LG Partners with Unruly

LG’s decision to cease its mobile business unit comes as the company reported a total revenue of US$4.66 billion for its mobile communications company in 2020. The company recorded sales of US$1.24 billion for the fourth quarter of 2020, which is higher than the same quarter of 2019 but 9.2% lower than the third quarter of 2020.

This was due to shortages of 4G chipsets and sluggish sales of premium smartphones in overseas markets, the financial report said. It is added that the full-year operating loss amounted to US$750.63 million.

While LG Electronics  is winding down its mobile business, it is ramping up offerings for its connected devices range. Last November, LG partnered with video advertising platform Unruly to enable advertisers to access native smart TV ad placements through its supply-side platform, UnrulyX.

With the partnership, Unruly can provide brands with “unique reach and uncluttered, highly-viewable placements” that drive action across all LG Smart TVs and video within the LG Channels app globally. LG will also utilize Unruly’s self-service platform to manage and optimize its own campaigns globally.

The partnership is said to provide advertisers access to an engaged viewing audience, native banner and video placements that add value to the customer experience and customizable interactivity with contextual alignment that drive brand objectives.

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