LG closing its money-losing cell mobile phone company

South Korean electronics maker LG stated Monday it is having out of its reduction-producing cell telephone organization to target on electric powered auto elements, robotics, artificial intelligence and other products and solutions and solutions.

LG’s board permitted the shift in technique and the business expects to absolutely exit the cellular mobile phone business enterprise by the stop of July, it claimed in a statement. LG, which also known as the handset sector “unbelievably aggressive,” was once the 3rd-biggest mobile phone maker but has shed market share to Chinese and other competition.

It was nonetheless No. 3 in North The united states, with a 13% marketplace share guiding Apple’s 39% and Samsung’s 30% as of the third-quarter of 2020, according to Counterpoint Know-how Market place Research.

LG earlier said it was examining its system as it described that its gross sales rose 5% from a calendar year before in the previous quarter of 2020 but profitability declined do to sluggish sales of quality products.

The business claimed it was providing its cellphone inventory and would continue on to supply services and assist for different durations of time dependent on where they are sold.

Specifics associated to employment would be decided “at the community level,” it reported.

The firm’s shares fell 2.5% on Monday.