LG Electronics to shut down its mobile business
It is the end of an era South Korean tech giant LG Electronics is shutting its mobile business for good the company says the division that’s been around for over a quarter of a century but has been losing money for years on end now will cease to be at the top of July however LG is keen to avoid massive job losses instead redeploying the workers to LG other subdivisions.
After 26 years of staying in the business, South Korea’s LG electronics is shutting down its loss-making mobile division a move that’s set to make it the first major smartphone brand to completely withdraw from the market the tech giant confirmed on Monday that it’ll end production and sales of mobile phone products on July 31st instead the company plans to focus resources on growth areas including evs smart homes robotics and artificial intelligence phones constituted 8.2 percent of LG sales last year and there’ll be a short-term loss of revenue but the corporate expects the closure to be financially favorable within the end of the day.
Also Read :
- Samsung new 5G phone Galaxy M62|Samsung Galaxy M62 Specifications and Price
- Mi launch event for Mi 11 Pro and Mi 11 Ultra is on March 29 |Mi 11 Pro and Mi 11 Ultra Specifications
Currently Samsung electronics and apple are the two most dominant players in the global smartphone market and Chinese firms are growing fast amid rising competition the company seems to have chosen to focus on electric cars future mobility and premium home appliances instead of mobile phones the company said the division’s roughly 3700 employees will be moved to other LG electronics businesses and affiliates with industry sources expecting partial transfers to its joint corporation with Magna international although LG was one of the pioneers in the market with the number of telephone innovations including ultra-wide-angle cameras and at its peak in 2013 the world’s third-largest smartphone manufacturer its smartphone division has not made profit since the second quarter of 2015 and logged nearly six years of losses totaling some 4.5 billion us dollars the firm reportedly held talks over a potential sale but negotiation failed due to big differences in valuing technology patents LG electronics made clear that will provide service support and software updates for customers of existing mobile products for a period of time to minimize any inconveniences on news.