LG Will No Longer Produce Smartphones

LG will no longer produce smartphones. LG will focus on technologies such as electric cars and smart homes.

LG Electronics announced that it is preparing to shut down its mobile communications unit for future projects such as an electric car part manufacturing project. LG will cease production and sales of smartphones as of July 31, in order to focus on the fields of electric cars, smart homes, robotics and artificial intelligence. While phones accounted for 8.2 percent of LG's sales last year, the company says it aims to be better financially in the long term, even though the company predicts a loss of revenue in the short term. LG said that this will enable them to strengthen car parts production and focus on developing new technologies such as sixth-generation network systems and cameras. Following the announcement, LG shares gained 4.1 percent, while the shares of LG Display, one of its subsidiaries, gained 6.3 percent. LG, one of the leaders of the Android operating system, was working on the production of Nexus smartphones with Alphabet, the owner of Google. LG Electronics had stated that it was planning to turn the electric vehicle part manufacturing into a new joint venture by signing an agreement with Canadian Magna International.