South Korean consumer electronics manufacturer LG has officially stopped production of smartphones, weeks after it confirmed its exit from its mobile phone business that was reeling from heavy losses for years.
The South Korean tech giant stopped the production of smartphones on Monday, reports Asia Business Daily. In April, LG announced the winding up of its smartphone business would take some time because the company had to fulfil obligations to its partners, including carriers in several markets that sell LG devices.
This might include the company's latest devices -- LG Velvet and the LG Wing -- which were announced last year. The company also said it would continue to support its existing devices for some time.
It had also promised its customers that its premium smartphone models will get three years of software support, which includes the Android 11 update.
Some of LG's smartphones (including Q-series phones) will also get Android 12 update and the latest models are expected to go up to Android 13. LG smartphones users still would be able to receive after-sale services for up to 4 years from the date of device manufacture.
LG's Vietnam factory, where most LG smartphones were built, will be switching over to home appliances manufacturing. LG had already transitioned some of its production capacity there to appliances to keep the factory workers employed, while the remaining workforce from the phone lines will be reassigned by July end.
The status of the rest of the facilities isn't known, but the production halt falls in line with LG's plan to gradually exit the smartphone business.
Meanwhile, LG Electronics is on track to become the biggest home appliances manufacturer with record-high sales of $6.3 billion in Q2, as per The Korea Herald. LG surpassed its rival Whirlpool in both Q1 and Q2 and analysts are expecting that it will keep its top position for the rest of the year.
LG, as a final goodbye to employees, was supposed to sell around 3,000 units of LG Velvet 2 Pro rollable phones. However, it didn't go as planned and the issue is being blamed on "congestion".
LG's rival Apple is also trying to lure the company's current smartphone owners with a trade-in programme, which offers KRW 150,000 (around $135) towards a new iPhone 12 or 12 mini.
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