LG says it is strongly shifting its focus to expanding its core business units in SA, as it prepares to officially pull the plug on its mobile business by 31 July.
The Korean multinational conglomerate last month announced it had taken a strategic decision to exit the "incredibly competitive" mobile phone sector, to focus resources in growth areas such as producing electric vehicle (EV) components, connected devices, smart homes, robotics, artificial intelligence and business-to-business (B2B) solutions.
The company says it is not planning to produce EV components in SA at this stage, and its key focus locally will be on expanding its business-to business unit and consumer business, as demand for connected electronic devices continues to grow in SA.
With many jobs being at stake within its mobile business, the company did not divulge details related to how employment will be affected in SA, noting it is working hard to ensure the closure of its mobile business will have minimal impact on its local operations.
“LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business to ensure there is minimal impact,” says LG product manager Kangman Lee.
“Because the decision to exit the mobile phone sector will enable LG to focus more resources in growth areas such as connected devices and B2B solutions, our focus will be on the core business such as home appliances and TVs, focusing on solutions, platforms and services based on consumers’ needs and future trends.”
The current LG phone inventory will continue to be available for sale in SA beyond July, and the electronics company will still provide service support and software updates for customers of existing mobile products, adds Lee.
“Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products,” according to Lee.
Through its SmartThinQartificial intelligence (AI) platform, LG has been working on creating a fully connected ThinQ ecosystem of smart devices embedded with AI capabilities, to enhance consumers' lives.
LG says it has a solid presence in the B2C and B2B fields, supporting future growth of businesses in over 128 markets across the globe, with almost 80 000 employees.
In 2019, LG established a 6G research centre with the Korea Institute of Science and Technology.
The electronics company is conducting research on 6G and says it believes future 6G technologies will provide faster data speed, lower latency and higher reliability than 5G. It is also working to bring the concept of Ambient Internet of Everything, which will provide an enhanced connected experience to users.
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