LG is looking to make money despite shutting down the mobile segment

LG officially announced its exit from the mobile market about a year ago. The company said in a statement at the time that such a decision would allow them to focus more on emerging areas such as electric car parts, smart gadgets, robots, artificial intelligence, and platforms and services. Now the company's executives have decided to make money this way, despite shutting down the smartphone business. Specifically, LG intends to license thousands of patents related to 5G and other wireless technologies.

According to The Elec, the company has about 20,000 patents in this area. Has authority and a new company is to be established soon to carry out the work of issuing licenses for the use of these patents. Apart from issuing licenses to use patents, LG may transfer ownership of some of them in full. It should be noted that a few months after LG's exit from the mobile market, a report was published about Samsung's attempt to acquire some LG patents in the field of 5G.

It remains to be seen whether companies that have previously been interested in LG patents will still want to acquire them. Given that LG is not present in the mobile market, it is a logical step to grant these patents for use by former competitors. It is said that maintaining these patents also costs a lot of money, and LG has to spend about $ 16 million a year to do so.

If this report is true, LG executives want to repeat Nokia's approach after leaving. The mobile market has sold many patents. LG, once one of the largest companies in the mobile market, like Nokia, has not been able to compete with its many competitors, and in recent years the market share of this company has been declining day by day. At a time when Chinese companies are turning to attractive, affordable handsets, LG is still delivering expensive handsets to its users. And we can even mention the LG Wing, which has a rotating mechanism. But these innovations did not receive much attention either. At first, LG, like Nokia, wanted to give up its brand to continue to make smartphones, but in this regard, no company was willing to pay the amount desired by LG executives to take over the mobile sector. That's why the company's mobile division was shut down forever.

• Why did LG leave the smartphone market?

Source: Android Central