South Korea-based company, LG Electronics decides to drop out its mobile manufacturing business from now. The company published the news on its website after the decision was approved by its board members.
The company’s Smartphone manufacturing units have been at loss for the past six years, costing the company a massive amount of $4.5 billion. Although LG decided to exit the mobile phones market, the company will continually work to contribute in sectors like electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and solutions.
LG Mobile phones which were in the top 3 spots in the American Market said that they will continue to sell until the stocks end at inventories. Also, the users of LG Mobile phones will continue to get updates and services for a certain period of time, depending upon the region.
In its prime days, LG focused on building mid-range and high-end smartphones. However, these are the same features where the competition is very high for the past 5 years. With smartphone manufacturers like Samsung, Apple the competition is getting tougher and tougher. On the other hand, thanks to Chinese manufacturers like Xiaomi, OnePlus, Oppo, Huawei contributing more to the less expensive high-end smartphones.
Previously other well-known brands like Blackberry, Nokia, and HTC had the similar fate of LG. They also announced their shut down of mobile business division due to unable to compete and adapt with emerging new technology and new players with innovative product ranges at that time.
Moving back to LG, the employment-related to the mobile manufacturing units will be discussed down at the local level as per the company officials.