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LG getting out of smartphone business

LG getting out of smartphone business
© Getty Images

South Korean electronics maker LG announced on Monday that its board of directors approved a decision to exit the smartphone business

The company said it will fully exit the market by the end of July. 

LG also said it is still selling its phone inventory and will continue to provide services and support for an unspecified period of time. 

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"Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas," it said. "Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products."

The South Korean company added that it will focus more on electric vehicle components, robotics, artificial intelligence and other products and services.

The Associated Press noted that LG previously reported its revenue rose 5 percent in the last quarter of 2020 compared to a year earlier, but profits fell due to sluggish sales of premium products. 

LG, once the third-largest phone maker, has lost market share to competitors, according to the AP. The news service, citing Counterpoint Technology Market Research, reported LG was still third in North American sales, trailing Apple and Samsung, with a 13 percent market share. 

The company’s shares fell 2.5 percent in trading on Monday.