[News] LG Electronics Reportedly Closes XR Unit to Focus on AI Home Appliances and Robotics

While most global tech giants push forward in the XR market, LG Electronics is shifting gears. According to South Korean media outlet the bell, the company has shut down its XR development unit just a year after its launch in late 2023.

The move suggests LG Electronics is scaling back its XR business due to slower-than-expected market growth, with plans to focus more on AI home appliances, HVAC (Heating, Ventilation, and Air Conditioning) and robotics, the report adds.

As per the explanation of the bell, XR encompasses virtual reality (VR), augmented reality (AR), and mixed reality (MR), enabling users to interact with both the real and virtual worlds through sight, sound, and motion.

End of Meta Partnership?

The bell notes that LG Electronics used to see XR as a key growth driver. It is worth noting that in early 2024, Meta CEO Mark Zuckerberg visited Korea and met with LG Electronics CEO Cho Joo-wan and HE Division Head Park Hyoung-sei, as highlighted in LG’s press release.

However, as Apple’s Vision Pro fell short of expectations due to lacking software and content support, Meta and LG Electronics clashed over strategic direction during their collaboration, which prompts the latter to put its XR business on hold and focus on other sectors, according to the bell.

Samsung Doubles Down on XR

On the other hand, the bell notes that unlike LG, Samsung is doubling down on XR. In late 2024, Samsung unveiled the “Infinite” XR device with Google, along with “Android XR,” an AI-powered platform supporting headsets and smart glasses, according to its press release.

TrendForce estimates that global shipments of VR and MR headsets are expected to reach approximately 9.6 million units in 2024, representing a YoY increase of 8.8%. Meta retains its position as the global leader in VR and MR device shipments with a 73% market share in 2024, according to TrendForce.

Read more

• [News] Google Acquires HTC XR Unit in USD 250M Deal, Expanding Its XR Ambitions
• Apple’s Vision Pro Reshapes the VR/MR Landscape, Driving Applications from Entertainment to Productivity Tools, Says TrendForce

(Photo credit: LG Electronics)