Seoul, South Korea
LG Electronics, At the time, one of the largest mobile phone manufacturers announced today that it would stop manufacturing these devices due to the growing competitiveness of the sector and after this branch of business generated a deficit in the last five years.
The South Korean company made public the decision, approved this month by its board of directors, through a communication to the South Korean regulatory authority.
In a subsequent statement to the press, the company explained that it is leaving the “incredibly competitive mobile sector” to focus its resources on areas where it sees potential for growth, such as components for electric vehicles, technology 6G, robotics, home automation or artificial intelligence.
The company also indicated that its currently available inventory will remain for sale and that “LG will provide service support and software updates for customers of existing mobile products for a period of time that will vary by region.
IG “the liquidation of the mobile business is expected to be completed by 31 July, although stocks of existing models may still be available after that date”.
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“LG will work closely with suppliers and partners throughout the process of closing our mobile business. Details on the templates will be determined locally,” he added in the statement.
In the future, the Seoul company has promised to continue to use “core technologies developed over two decades of mobile business operations” to apply to “existing and future products”.
The decision comes after the company stressed in its latest earnings presentation in January that the future of this division, in the red in the second quarter of 2015 and with accumulated losses of approximately 5 trillion gains (approximately 4.434 million gains). it was open to “any possibility.”
LG, which at the beginning of the last decade became the world’s third largest mobile phone manufacturer only recently Samsung and Apple, It currently occupies the ninth position, with only a 2% share of the global market, according to Counterpoint Research.