Electronics maker LG will abandon its weak mobile phone business to focus on electric vehicle components, robotics, artificial intelligence and other products and services, the South Korean company said on Monday.
LG’s board of directors approved the change in strategy and the company expected to leave the mobile business completely by the end of July, according to the corporate statement.
LG has become the third largest mobile phone manufacturer in the world, but has lost market share to the Chinese and other competitors.
It remained the third largest manufacturer in the industry in North America, with a market share of 13%, behind Apple’s 39% and Samsung’s 30% in the third quarter of 2020, according to Counterpoint Technology Research Market.
The company previously indicated that it is analyzing its strategy, with a 5% increase in its sales in the last quarter of 2020, compared to the previous year. However, profitability decreased due to poor sales of its state-of-the-art products.
The company has indicated that it will sell its mobile phone inventory and will continue to provide services and support for items already used for different periods of time, depending on when they were sold.
Job details will be set “locally,” the company said.
LG shares fell 2.5% on Monday.