Visitors use their mobile telephones subsequent to LG sales space in the course of the Mobile World Congress in Barcelona, Spain, February 27, 2019.
Rafael Marchante | Reuters
South Korean electronics maker LG mentioned Monday it’s getting out of its loss-making mobile phone business to deal with electrical automobile elements, robotics, synthetic intelligence and different services and products.
LG’s board accredited the shift in technique and the corporate expects to absolutely exit the mobile phone business by the tip of July, it mentioned in an announcement.
LG was as soon as the third-largest mobile phone maker however has misplaced market share to Chinese and different rivals.
It was nonetheless No. three in North America, with a 13% market share behind Apple’s 39% and Samsung’s 30% as of the third quarter of 2020, in accordance to Counterpoint Technology Market Research.
LG earlier mentioned it was assessing its technique because it reported that its gross sales rose 5% from a yr earlier within the final quarter of 2020 however profitability declined due to sluggish gross sales of premium merchandise.
The firm mentioned it was promoting its phone stock and would proceed to present providers and assist for numerous durations of time relying on the place they’re bought.
Details associated to jobs could be determined “on the native stage,” it mentioned.
The firm’s shares fell 2.5% on Monday.
