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LG can still make money from its dead mobile business

LG pulled out of the mobile market last year, but it can still make money from it.

In April 2021, LG officially announced that it would stop selling mobile phone products. However, LG hasn’t completely disappeared from the smartphone market. The South Korean company is expected to license several patents related to 5G and other wireless technologies.

LG can still make money from its dead mobile business
LG can still make money from its dead mobile business

LG is considering licensing some of the 20,000 patents it acquired before shutting down its mobile business, South Korean newspaper The Elec reported. Sources from The Elec revealed that LG plans to set up a subsidiary to handle licensing deals for different smartphone brands.

LG may also sell some of these patents to interested companies. Months after LG exited the smartphone business, Samsung is said to be eyeing LG’s 5G patent portfolio.

Since the company’s smartphone business is no longer active, it doesn’t hurt to share some of its technology with established rivals, and it will generate revenue.

The reason for granting or selling LG’s patents is that the cost of maintaining them is very high, estimated at 20 billion won (about 370 billion VND) per year.

LG has licensed several patents related to mobility technology and auto parts through independent broker Avanci.

However, given LG’s current focus on smart home products, the company may retain some patents it believes will be useful in the future.

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