(RTTNews) - LG Electronics decided to shutter its unprofitable mobile phone business later this year, after almost 26 years in operation.
The decision is expected to help the company focus its resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services, the South Korean technology company said in a statement on Monday.
Over the past nearly 6 years, the company's smartphone business has incurred a loss totalling about $4.5 billion. LG has been losing its mobile business to its Chinese competitors, Apple, and Samsung.
LG reportedly had said in January that it would consider all possibilities for the future of its mobile phone business. It first started making mobile phones in 1995.
LG will complete the winding down of its mobile phone business by July 31. But inventory of some existing models may still be available after that.
The company will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region.
LG noted that it will determine details related to employment at the local level.
The company plans to continue to develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. It will retain core technologies developed during the two decades of LG's mobile business operations.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
