LG to shut its mobile phone business worldwide citing 'losses'

The division has logged nearly six years of losses totaling some $4.5 billion.

South Korea's LG Electronics on Monday announced that it will wind down its loss-making mobile division - a move that is set to make it the first major smartphone brand to completely withdraw from the market.


Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by Smartphone titans Apple and Samsung Electronics.


The division has logged nearly six years of losses totalling some $4.5 billion (roughly Rs 33,010 crore), and dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices and smart homes, it said in a statement.


According to market researcher Counterpoint Research, LG was the world's ninth-largest smartphone vendor with a market share of 2 percent after shipping 24.7 million smartphones last year, down 13 percent from a year earlier.

 

India Scanner News Network

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