Seoul, South Korea (AP) — South Korean electronics maker LG announced on Monday that it will break out of its deficit mobile phone business and focus on electric vehicle parts, robotics, artificial intelligence and other products and services.
LG’s board of directors has approved a strategic shift, and said in a statement that the company plans to withdraw completely from its mobile phone business by the end of July.
LG was once the third largest mobile phone maker, but lost market share to China and other competitors.
According to Counterpoint Technology Market Research, as of the third quarter of 2020, it was still third in North America with a market share of 13%, behind Apple’s 39% and Samsung’s 30%.
LG previously said it was valuing its strategy because it reported fourth-quarter 2020 sales growth of 5% year-over-year, but profitability was due to sluggish sales of premium products. It has dropped.
The company says it sells phone inventories and will continue to provide service and support for different periods of time, depending on where it is sold.
It said that details about the work would be decided “at the local level”.
The company’s share price fell 2.5% on Monday.