LG axes smartphones forever: What it means for you
A company that was once one of the world's biggest names in smartphones has announced it hanging up on the market today, abandoning plans to launch rollable and flexible mobile technology later this year.
LG's decisions follows years of falling smartphone sales, beaten by leaders Apple and Samsung, as well as fierce Asian rivals such as Huawei, Xiaomi and Oppo.
The South Korean tech giant currently commands just two per cent of the global smartphone market, according to figures from Statista, compared to 21 per cent for Apple and 16 per cent for Samsung.
LG's board of directors signed off on its mobile exit today but the company said it would continue to sell its remaining smartphones until July 31.
"Current LG phone inventory will continue to be available for sale," the company's statement read.
"LG will provide service support and software updates for customers of existing mobile products in accordance with its contractual obligations, manufacturer's warranty and Australian consumer laws."
LG's departure from the market will put a pin in its plans to launch a smartphone with a "rollable" screen, as promised at this year's virtual Consumer Electronics Show.
The smartphone, which was to feature a screen that could be resized by the user as required, would have been the second smartphone in the company's Explorer project.
The first, the LG Wing, had a second screen that spun over the first to create a T formation. It was not released in Australia.
In recent years, LG smartphones had also fallen out of favour with some major carriers and retailers, including Harvey Norman and Optus.
Australian consumers who have recently purchased an LG smartphone will continue to receive software support for their device, the company said, including software updates, replacement parts and warranty coverage. LG provides a 12-month warranty on phones and six months on batteries and accessories.
Buyers may be covered for a longer period, however, as Australian Consumer Law dictates that mobile phones must remain "fit for purpose" for an "amount of time that is reasonable to expect, given the cost and quality of the item".
LG said it would continue to work on technology in other areas including TVs, smart homes, robotics, artificial intelligence, and electric vehicles.
Originally published as LG axes smartphones forever: What it means for you