Seoul: South Korean electronics maker LG stated Monday it’s getting out of its loss-making cell phone enterprise to deal with electrical automobile parts, robotics, synthetic intelligence and different services.
LG’s board accepted the shift in technique and the corporate expects to completely exit the cell phone enterprise by the tip of July, it stated in a press release.
LG was as soon as the third-largest cell phone maker however has misplaced market share to Chinese language and different rivals.
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 accordance with Counterpoint Know-how Market Analysis.
LG earlier stated it was assessing its technique because it reported that its gross sales rose 5% from a yr earlier within the final quarter of 2020 however profitability declined do to sluggish gross sales of premium merchandise.
The corporate stated it was promoting its cellphone stock and would proceed to offer companies and assist for varied durations of time relying on the place they’re offered.
Particulars associated to jobs could be determined on the native degree,” it stated.
The corporate’s shares fell 2.5% on Monday.
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