LG will stop manufacturing phones, it said, because the business has continued to yield losses.
It will instead concentrate on additional productive technologies equivalent to components for electrical vehicles, robotics, and AI, it said.
LG remains one of the most important smartphone makers within the world, behind solely Samsung and Apple in the US.
But it's struggled to show a profit despite its giant size, amid competition from each of the established international brands and a variety of China-based new entrants.
LG‘s board approved the shift in strategy and also the company expects to completely exit the portable business by the tip end of July, it aforementioned during a statement. LG was once the third-largest mobile phone maker however has lost market share to Chinese firms and different competitors.
It was still No. three in North America, with a 13% market share behind Apple’s 39% and Samsung’s 30% as of the third quarter of 2020, per Counterpoint Technology Market Research.
LG earlier aforementioned it absolutely was assessing its strategy because it reportable that its sales rose 5% from a year earlier within the half-moon of 2020 however profits declined due to sluggish sales of premium products.
The company aforementioned it absolutely was marketing its phone inventory and would still give services and support for varied periods of time with the location of where sales were made been a factor.