LG officially withdraws mobile division from market

South Korea’s LG Electronics Inc said on Monday it will wind down its loss-making mobile division—making it the first major smartphone brand to completely withdraw from the market.

The division has logged nearly six years of losses totalling some $4.5 billion, and dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices and smart homes, it said in a statement.

Currently, its global share is only about 2 per cent. 

LG’s smartphone division – the smallest of its five divisions, accounting for about 7% of revenue – expects to complete the shut down by 31 July.

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