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LG Electronics has announced that it will close its mobile business unit, meaning that the company is pulling out of the smartphone market.
This follows rumors and reports that the company was considering this move.
In a global statement released on 5 April, the company confirmed that its board of directors had approved the decision.
“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 said.
While the company will release no new phone models, current inventory will continue to be available for purchase.
LG also said it will provide service support and software updates for customers, with the time period varying by region.
What does the LG mobile and smartphone shutdown mean for South Africa?
Memeburn reached out to LG South Africa to find out how the closure would affect local consumers.
Globally, the closure of the mobile business should be completed by 31 July.
In South Africa, this process begins today. But the completion date will depend on how long this process takes.
“The process of winding down the business starts today but it will take some time due to obligations we have to customers and partners,” a representative said.
In terms of warranty and support, LG said customers will receive this in line with local law and contractual obligations.
“We will honor all contractual obligations to our business partners, where applicable,” the representative said. “Warranties, software updates, and support for existing products will continue to be provided in line with local laws and regulations.”
While not confirmed by LG, locals may see sales and discounts on remaining stock to incentivise consumers — especially if stock does not sell out before July.
However, Memeburn has reached out for further comment on what incentives there could be for local consumers.
Feature image: LG