The South Korean company LG Electronics Inc has announced that it will gradually reduce the production of smartphones and that the division that deals with telephony will be closed by next July 31st. LG's smartphone section is the smallest of the 5 divisions and contributes around 7 percent of the company's revenue, but in the last six years it has generated losses of around 3.8 billion euros.
LG will be the first major smartphone maker to retire from the market. Although around 2013 LG had marketed some successful models that made the company the third largest phone company in the world, behind Samsung and Apple, in recent years its smartphones have had both software and hardware problems. Furthermore, according to some analysts, the company was not able to withstand the competition of emerging companies from China, such as Huawei and Oppo.
In a statement released on Monday, LG explained that the decision to exit this “incredibly competitive” sector will allow the company to grow in the production of components for electric vehicles, robotics and technologies for “smart homes”, among others. other things.
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