Advertisement

S. Korea's LG Electronics to close down smartphone business

LG Electronics, South Korea's second-largest appliance firm after Samsung, is closing down its mobile phone business, the company said Monday, after the division lost billions in recent years.

The firm was once considered a pioneer of the Android operating system, collaborating with Google on the Nexus series in the early 2010s.

But it has long struggled to increase sales, entering the market late and facing tough competition from emerging cheaper Chinese rivals such as Huawei.

It was regularly listed among the world's top 10 smartphone manufacturers but according to tracker Counterpoint the last time it recorded a global market share of three percent or more was in the second quarter of 2018.

The unit has recorded losses for 23 consecutive quarters since 2015, with the cumulative deficit reaching about 5 trillion won ($4.4 billion) by the end of last year.

The division has "failed to produce results" amid "intensifying price competition among major competitors in the entry-level mobile phone market", the company said in a statement.

The decision will enable the firm to "focus resources in growth areas such as electric vehicle components", robotics and smart homes, it added.

LG reportedly held talks with Vietnam's Vingroup over a potential sale, but it broke down over price differences, according to local reports.

Topics: LG Electronics , South Korea , Samsung , Nexus , Mobile phone
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementKPPI
Advertisement