LG Electronics to end production, sales of its smartphone biz
Published On: Monday, April 5, 2021 | By: Team KnowMyStock
South Korean LG Electronics Inc announced today(5th March 2021) that it will wind down its loss-making mobile division. Its decision to pull out will leave its 10% share in North America, where it is the No. 3 brands, to be gobbled up by smartphone titans Apple Inc and Samsung Electronics. The division has logged nearly six years of losses totaling some $4.5 billion, and dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices, and smart homes, it said in a statement.
In better times, LG was early to market with a number of cell phone innovations including ultra-wide angle cameras and was once in 2013 the world's third-largest smartphone manufacturer behind Samsung and Apple.But later, its flagship models suffered from both software and hardware mishaps which combined with slower software updates saw the brand steadily slip in favour. Analysts have also criticised the company for lack of expertise in marketing compared to Chinese rivals.
Tags: LG Electronics smartphone biz
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