The decision was rumored a while ago, but the last few misses in the high-end market dragged this business unit to its end. LG was betting on the wrong cards especially when it came to flagship devices in the last few years. Nick wrote about the possible exit back in January, as the company lost $4.5 billion on phones over the last five years. 

The decision to close the mobile business unit was approved by its board of directors earlier today.

LG's strategic decision to exit the incredibly competitive mobile phone sector will let the company  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.

Current LG phone inventory will continue to be available for sale. LG will provide service support and software updates for customers of existing mobile products for a period of time, varying by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at a local level.

In the future, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG's mobile business operations will also be retained and applied to existing and future products.

The mobile phone business's wind down is expected to be completed by July 31, although inventory of some existing models may still be available after that.