Guests use their cell phones subsequent to LG sales space through the Cellular World Congress in Barcelona, Spain, February 27, 2019.
Rafael Marchante | Reuters
South Korean electronics maker LG stated Monday it’s getting out of its loss-making cell phone enterprise to deal with electrical car parts, robotics, synthetic intelligence and different services.
LG’s board authorized the shift in technique and the corporate expects to completely exit the cell phone enterprise by the top of July, it stated in an announcement.
LG was as soon as the third-largest cell phone maker however has misplaced market share to Chinese language and different rivals.
It was nonetheless No. 3 in North America, with a 13% market share behind Apple’s 39% and Samsung’s 30% as of the third quarter of 2020, in response to Counterpoint Know-how Market Analysis.
LG earlier stated it was assessing its technique because it reported that its gross sales rose 5% from a yr earlier within the final quarter of 2020 however profitability declined on account of sluggish gross sales of premium merchandise.
The corporate stated it was promoting its cellphone stock and would proceed to offer providers and assist for numerous intervals of time relying on the place they’re offered.
Particulars associated to jobs could be determined “on the native degree,” it stated.
The corporate’s shares fell 2.5% on Monday.