South Korea electronics giant LG after years of loss from the smartphone business, the company said today. According to analysts, this is an expected step. Although the popularity of LG smartphones in the US is immediately behind Application in Samsung, this brand still has a small market share among smartphones. LG shares are listed today decreased by 2.52%.
In a press release, the company said the decision was approved by the board and the company expects to leave the mobile business altogether by the end of July. They will focus now other placessuch as electric vehicle parts, connected appliances, smart homes and artificial intelligence.
They decided to take this step because the company had it for almost six consecutive years losses totaling $ 4.5 billion. At its peak, LG competed with Samsung smartphones Galaxy, which were the top brands that used the Google operating system Android. That’s when they started software and hardware problems to have stagnation in design, and these have been further accelerated by cheaper and better equipped phones from Chinese manufacturers such as Xiaomi, Huawei in Oppo. The current share of LG smartphone sales is approx 2 percent.
For existing LG smartphone users, the company has promised to provide service support in updates software for a period of time that will vary by region. LG is still in the process of introducing a seven-month operating system Android 11 on some of their smartphones. It is not yet clear if any of the LG smartphones will receive it Android 12, which will be available this year.