Phone business

LG says goodbye to its telephony business and definitively stops the production of smartphones

LG Electronics pulled its smartphones from production lines earlier on Monday, according to a report.

STRONG POINTS

  • LG has reportedly stopped manufacturing phones at its facilities.
  • This marks an important step in winding down the company’s phone business.
  • LG previously said it would continue to offer software support for phones for up to three years, however.

LG’s smartphone business has finally reached a major milestone towards its demise. According to a report, the South Korean tech giant halted smartphone production on Monday, marking the start of what might otherwise have been a booming business against Apple and Samsung. It comes weeks after LG announced the closure of its mobile phone business which had been reeling from heavy losses for more than six years.

According to a report by Asia Business Daily, LG Electronics pulled its smartphones from production lines earlier on Monday. But that came weeks after the company’s initial announcement in April. At the time, LG said it would take some time to wind down its phone business as it had to fulfill obligations to partners, including carriers in several markets that sell LG phones. This may have included units from the latest LG Velvet and LG Wing which stunned the tech world with their beautiful designs and extravagant approach. LG announced the two smartphones last year.

The factory in Vietnam that has so far produced many phones for LG will now transform into factories for manufacturing home appliances, according to the publication. The status of the rest of the facilities is not known at this time, but the production shutdown is part of LG’s plan that will see the smartphone business gradually die out.

LG previously said it would continue to sell phones in select markets until inventory runs out, while software support will continue for up to three years depending on the handset. The LG Wing and LG Velvet will get Android 12 and even Android 13 as they become available, but don’t get your hopes up considering LG’s notoriety with Android updates. Other than that, there will be up to four years of after-sales service from the date of manufacture on a range of LG smartphones in certain markets.

Meanwhile, the ambitious LG Rollable phone that debuted at CES 2021 in all its glory is up for grabs at a discount, alongside an unannounced Velvet 2 Pro, but only for LG employees in South Korea. Each employee can only buy up to 2 units of a phone with deep discounts. However, these units will have a warranty of six months or while the stock of parts is exhausted. These units will also not be eligible for Android upgrades as they are essentially inventory that will never go on sale.

If you have an LG phone that you want to trade in, Apple and Samsung are make aggressive offers where they take LG phones and offer a discounted new iPhone or Galaxy phone. According to a report from Yonhap, Apple has teamed up with local mobile operators to run a special program that gives LG users a chance to get an extra 150,000 KRW (nearly $134) on top of the value of recovery of the smartphone. Samsung also runs a similar program, but only for customers in South Korea.

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