Once a major player in the smartphone industry, LG Electronics Inc. has struggled to maintain adequate market share in the smartphone industry. Electronics giants like Apple and Samsung have dominated the high-end mobile device market. Correspondingly, emerging competitors from the Chinese markets have consistently taken over the cost efficient and mid-end scene. Consequently, LG announced in a statement that they will begin closing down the mobile phone sector of the company.
The move to shut down the division comes after the company has seen significant revenue losses over the past few years. LG has reported profit losses totaling a little over $4 billion USD.
LG stated that allocating resources elsewhere within the business will allow the company to focus their efforts on more prospecting parts of the company.
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, artificial intelligence and business-to-business solutions, as well as platforms and services.
LG Electronics Inc.
The mobile division is expected to shut down by July 31 with LG stating that they will continue to support all existing products in circulation.
