April 8th LG Electronics stated that it will withdraw from the mobile business after years of loss-making performance and that its mobile communications (MC) department will no longer produce and the reason for selling mobile phones is the long-term sluggish business and fierce competition in the industry.
Although it announced its withdrawal from the smartphone business, South Korea’s LG Electronics said it will provide extended software upgrades for its smartphones. LG’s mobile device operating system (OS) update guarantee will be extended for one year.
LG’s high-end smartphone users can now get a three-year operating system upgrade, while users of LG’s mid-to low-end phones can get up to two years of upgrade. LG stated that the gradual closure of its mobile phone business is expected to be completed before July 31 this year, after which some existing model inventory may still be sold.
A market research organization, LG shipped 24.7 million smartphones last year, down 13% year-on-year. It is the ninth-largest smartphone maker in the world with a market share of 2%.