South Korean LG stops producing and selling smart phones, the company announces.
Operations in the “extremely competitive mobile phone sector” have declined for almost six years in a row, and the technology giant has lost a total of 5 trillion won (equivalent to SEK 40 billion) on it.
Recently, the company’s flagship models have lost popularity and account for only two percent of the world market.
It was different in 2013, when LG was the world’s third largest mobile phone manufacturer after Samsung and Apple. Among other things, they were out early with wide-angle cameras. LG has indicated that it had plans for a mobile phone with a kind of extendable screen, but it will never see the light of day – at least not under the South Korean brand.
Continue to support current models for a while
LG is still the third largest in North America, with a market share of ten percent.
Attempts have been made to sell the mobile division to the Vietnamese Vingroup, but according to a source, the negotiations broke down when no agreement was reached.
The technology company will instead invest in making parts for electric cars and connected gadgets for, among other things, homes. Production will be discontinued by July, but the company promises to continue to support current models for some time to come.