South Korean electronics maker LG says it’s getting out of its loss-making cell phone enterprise to give attention to electrical automobile elements, robotics, synthetic intelligence and different services
SEOUL, South Korea — South Korean electronics maker LG mentioned Monday it’s getting out of its loss-making cell phone enterprise to give attention to electrical automobile elements, robotics, synthetic intelligence and different services.
LG’s board authorised the shift in technique and the corporate expects to totally exit the cell phone enterprise by the tip of July, it mentioned in an announcement.
LG was as soon as the third-largest cell phone maker however has misplaced market share to Chinese language and different opponents.
It was nonetheless No. three in North America, with a 13% market share behind Apple’s 39% and Samsung’s 30% as of the third-quarter of 2020, in keeping with Counterpoint Know-how Market Analysis.
LG earlier mentioned it was assessing its technique because it reported that its gross sales rose 5% from a 12 months earlier within the final quarter of 2020 however profitability declined do to sluggish gross sales of premium merchandise.
The corporate mentioned it was promoting its telephone stock and would proceed to supply companies and assist for varied durations of time relying on the place they’re bought.
Particulars associated to jobs can be determined “on the native stage,” it mentioned.
The corporate’s shares fell 2.5% on Monday.