Tuesday, April 20, 2021
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LG Electronics shut down loss-making smartphone business

LG Electronics the makers of LG smartphones have shut down the business and exit the market over increased losses.

The South Korean giants announced the decision following a six year loss making period amount to $4.5 billion,

In 2013, they innovated the wide angle cameras in a bid to boost their sales making them the third largest producer of smartphones coming behind Samsung and Apple.

They also opted to sell part of the business but nothing changed as the bosses described the business highly competitive.

In a statement issued by the company, they revealed that they will shift their focus on smart home devices, electric vehicle components, robots and artificial intelligence.

“LG’s 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 and artificial intelligence,” Said LG Electronics.

Even though they have closed down the smart phone business, LG will continue with the sale of the existing stocks and even provide technical support and will eventually wind up the business in July.

Coming second after Samsung, they are still the biggest markers of TV sets and also signed a deal with Magna International for the production of electric car componets.

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