Photo: LG
LG has officially announced that it’s giving up on smartphones, with the entire mobile business to close by July 31. Sales of LG mobile devices will continue until all inventory is cleared out.
For industry watchers, news that LG is waving goodbye to phones isn’t necessarily surprising news, especially as the company has been having a hard time lately staying close to its rivals. Sales of its devices have declined substantially in the last few years, despite promised innovations like rollable phones.
On the other hand, LG says the decision to give up on smartphones is a strategic move that’ll allow it to focus more on other industries. Including the car business, that is.
“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 says.
For LG, concentrating on the automotive industry makes sense, especially because it has invested in EV solutions heavily in the last few years. And now that the EV revolution is gaining more ground, the industry as a whole needs LG too.
LG Chem, for example, is one of the world’s leading battery makers. The company started the mass production of its first li-ion battery packs for EVs no less than 22 years ago, and it’s currently the battery supplier for plenty of models, including Ford Focus, Chevy Volt, and Renault Zoe.
In addition, LG also builds in-car displays, cameras, and other components that have already been showcased at tech events in the last few years and which have contributed to the growth of the concept of connected cars as a whole.
And LG focusing more on EV components happens just at the right time for the market as a whole. Tech giants, including Apple, Xiaomi, Huawei, and others, as well as traditional carmakers, are investing more aggressively in zero-emission vehicles. Needless to say, the demand for batteries and other components will substantially increase in the coming years.
LG has another ace up its sleeve. The company says it plans to use its mobile know-how and tech in other industry areas, and given the future of driving is becoming more digital, LG could thus become an important player in this regard.
On the other hand, LG says the decision to give up on smartphones is a strategic move that’ll allow it to focus more on other industries. Including the car business, that is.
“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 says.
For LG, concentrating on the automotive industry makes sense, especially because it has invested in EV solutions heavily in the last few years. And now that the EV revolution is gaining more ground, the industry as a whole needs LG too.
LG Chem, for example, is one of the world’s leading battery makers. The company started the mass production of its first li-ion battery packs for EVs no less than 22 years ago, and it’s currently the battery supplier for plenty of models, including Ford Focus, Chevy Volt, and Renault Zoe.
In addition, LG also builds in-car displays, cameras, and other components that have already been showcased at tech events in the last few years and which have contributed to the growth of the concept of connected cars as a whole.
And LG focusing more on EV components happens just at the right time for the market as a whole. Tech giants, including Apple, Xiaomi, Huawei, and others, as well as traditional carmakers, are investing more aggressively in zero-emission vehicles. Needless to say, the demand for batteries and other components will substantially increase in the coming years.
LG has another ace up its sleeve. The company says it plans to use its mobile know-how and tech in other industry areas, and given the future of driving is becoming more digital, LG could thus become an important player in this regard.
Google News