Let’s all take a minute for LG Electronics, which just became a casualty in the ruthless smartphone industry. The South Korean tech giant announced it will shut down its mobile phone business progressively by the end of July, as it wants to focus its resources on other areas such as robotics, AI, electric vehicles, connected devices, and smart homes.
Back in the day, LG was one of the most innovative companies in the market (we were rocking a pink LG flip phone about 15 years ago), pioneering Android software and rolling out innovative products such as ultra-wide-angle cameras.
But, sadly, its smartphone business became a real burden over the past six years (with around $4.5b in losses – that’s a hard one to swallow!). However, given that only 8% of the firm’s sales come from phones these days, LG seems to be making the right choice by cutting its losses short.