LG Electronics has made a statement to shut down its smartphone business. The South Korea-based electronics company has incurred heavy losses of around $4.5 billion for six years.
In January, LG had stated, talking about options for division. The electronics giant will be focusing on areas of potential incremental growth like connected devices, electric vehicle components, robotics, business-to-business solutions, artificial intelligence, and smart homes.
The smartphone business accounted for around 7.4% of the company’s revenue while its global smartphone market share is 2%. There will not be any potential layoffs as per the company, but details associated with employment will be determined at the local level.
LG has put the existing stock of phones on sale with software support and updates for a period of time varying by region.
In 2013, LG had been the largest smartphone maker with multiple innovations like ultra-wide-angle cameras. The company incurred losses for its software and hardware issues.
While LG ranks as the third most popular brand in North America, it didn’t get the same reception in other markets. According to reports, the company had shipped 28 million phones in 2020.
The details of the smartphone business will be completed by July 31.