LG Smartphones Set to Phase Out: What Will Happen to Your Phone After Mobile Business Shuts Down? LG is shutting down its mobile phone business by July 31. For real. Photo : Mitul Gajera/Unsplash LG is shutting down its mobile phone business by July 31. Any existing phone in the market would continue to sell until supplies last, while support and software updates will remain available for some time. However, the company is officially taking off its interest and production from the mobile phone industry. The rumor in the tech industry that LG is shutting down its mobile phone business ame true with the comany's official announcement in the LG Newsroom on April 5. The company said it that "stepping away from phone manufacturing and sales enables" themto "focus on growth sectors including EVs, IoT, and B2B solutions."