LG Electronics Inc has announced that it will phase out its mobile division after not finding a buyer. This makes it the first major smartphone brand to leave the market entirely.
The division is expected to be wound up in late July this year, although the company may resell some of its existing models thereafter, according to LG Electronics.
The South Korean tech giant has amassed around $ 4.5 billion in losses over the past six years. By exiting the smartphone industry, the company can transfer its resources to other business areas.
LG's smartphone division is the smallest of its five divisions and accounts for around 7 percent of the company's sales.
In a statement, the company said it will shift its focus to growth areas such as electric vehicle components, connected devices and smart homes.
Once a top player in the market
Photo credit: Scholarloay
According to the research company Strategy Analytics, LG was once one of the world's top three smartphone manufacturers in 2013.
In 2013, a curved screen smartphone was produced. It was one of the first electronics manufacturers to bring the technology to the market for the mass market.
However, the popularity of its smartphones began to wane, especially with the arrival of new players such as Xiaomi, Huawei, and Oppo.
Young brands like Realme are also slowly gaining market share for Android. While not yet a popular brand, realme shipped 10 million phones worldwide in the first 14 months of its inception, a tremendous achievement for a young company.
Although it is still the third most popular smartphone brand in the US after Apple and Samsung, it was no longer in the top 3 worldwide, according to research provider Counterpoint Research.
The current market share is around two percent. Last year 23 million phones were shipped, compared to 256 million at Samsung. The market share in the USA is around 10 percent.
Despite leaving the smartphone market, LG plans to keep its patents for 4G and 5G core technology and to further develop communication technologies for 6G.
It will also continue to provide service support and software updates to customers of existing mobile products for a period of time that will vary by region, according to the brand.
Selected image source: Manufacturing.net