LG To Stop Producing Mobile Phones After Recording Loses For 6 Years
Mobile Phone giant, LG is officially out of the smartphone business
The news was confirmed after being approved by the board of directors recently
After the company recorded losses for 6 years, it has decided to focus on other electronic devices
LG’s mobile division is set to stop the production of smartphones after confirmation from its board of directors.
This will make the South Korean Company the first major smartphone brand to completely leave the market.
The company’s 10% share in North America will be acquired by other smartphone giants, Apple and Samsung.
The former mobile phone powerhouse made its decision to leave the smartphone production industry after six years of losses.
Dropping out of the smartphone industry will allow the company to focus on other areas such as; smart homes and electric vehicle components.
LG was behind some major smartphone innovations and was even the world’s third-largest smartphone manufacturer after Samsung and Apple.
The brand slowly declined after devices suffered from software and hardware issues, and software updates were slow to be released.
Last year, the company shipped only 23 million phones, compared to 256 million for Samsung.
Although LG is not the first major brand to have declined, (Nokia, HTC, Blackberry) it is the first to completely exit the market.