LG exits smartphone business after years of losses
LG, the South Korean tech giant, has announced its exit from the mobile phone unit after years of losses, marking the end of an era for a trailblazer in the Android world.
The division is expected to be wound down by July 31, although the company may continue to sell some of its existing models after that.
According to LG Electronics, the “strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions.”
While it would not be manufacturing new phones, it noted that it would continue to provide support and software updates to existing customers for a certain “period of time” which would vary by region.
“LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level,” the company noted.
LG was once one of the world’s top smartphone makers, even making the top three back in 2013, according to research firm Strategy Analytics.
But the company’s devices have since dwindled in popularity, particularly as Chinese upstarts such as Xiaomi and Oppo have surged around the world. As of last year, LG was no longer even among the top seven players globally, according to Counterpoint Research, even though it is still the third most popular smartphone vendor in the United States, after Apple (AAPL) and Samsung (SSNLF).
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