LG surrenders to Apple and Samsung and leaves the smartphone business
South Korean electronics maker LG is closing its loss-making smartphone segment. LG Electronics announced that the board approved the move on Monday. The closure of the mobile phone business is expected to be completed by the end of July.
It was a strategic decision to withdraw from the region “with extremely intense competition”. LG’s withdrawal from the smartphone business has been on the horizon for quite some time. The department has shown a loss of operation for years. Over the past six years, the mobile phone maker has lost about $ 4.5 billion with its smartphones.
In Europe, LG has played almost no role in the smartphone business for years. In the US, on the other hand, South Koreans held a market share of about 10% until recently, making them number three in the United States after Apple and Samsung.
Many years ago LG was a big brand in the smartphone market, similar to Nokia, Motorola, Blackberry or HTC. Relatively weak software support has deterred many customers in recent years. It is also unclear how long the LG devices sold will continue to receive updates. LG only writes that it will update and support all devices on the market for a certain period of time. This can be two months or two years.
In the future, the company wants to concentrate its resources on development areas, such as spare parts for electric vehicles, especially batteries and robot technology.
(oli / sda / dpa)
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