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LG announced today that it is leaving the smartphone market. The decision would “allow the company to concentrate capital on areas of growth such as electric car components, smart devices, home automation, robotics, virtual reality, and business-to-business solutions, as well as platforms and services,” according to the press release.
LG may share its decision on the business’ fate with employees as soon as early April, the DongA report said.
Following the division’s massive losses over the last five years, the switch has been rumoured for several months. LG’s recent high-end smartphones have struggled to compete with rival South Korean manufacturer Samsung, although its more affordable handsets have faced tough competition from Chinese rivals.
LG, which had been producing cell phones for nearly a quarter-century, eventually fell behind rivals Apple Inc and Samsung Electronics Co Ltd, owing in part to poor marketing and slow software updates.
Its mobile business had suffered losses for nearly six years, totaling about $4.5 billion by the end of last year.
The innovations built over the company’s 2 centuries of mobile business activity will be maintained and extended to current and future products, according to the company. Employees from the mobile business unit will be transferred to other departments.