How Ditching Smartphones Saved LG's Financial Future

LG closed its loss-making smartphone business in 2021, allowing the company to pivot to automotive components, smart home, and AI. By 2026, its order portfolio for EV components reached $75 billion, and the B2B segment generates 36% of revenue. Exiting the smartphone market proved to be a strategically sound decision.

South Korean conglomerate LG decided in 2021 to completely exit smartphone production, which had incurred losses of $4.5 billion over six years. The company could not compete with Apple, Samsung, and Chinese brands, holding only 2% of the global market by 2020. After closing the mobile division, LG redirected resources to promising areas: automotive components, smart home systems, robotics, artificial intelligence, and corporate (B2B) solutions. By 2026, the order portfolio for EV components reached $75 billion, and the B2B sector generates 36% of the company's revenue. The article notes that LG's exit from the smartphone market proved farsighted amid a predicted industry crisis, with brands like ASUS and Meizu also ceasing device production. The material is analytical, highlighting a successful business transformation.