LG Electronics officially announces its withdrawal from the mobile phone market

LG Electronics announced today, Monday, that it will withdraw from the mobile phone market after years of losses amid increasing competition with bigger competitors.

The South Korean technology company said in a periodic report that the company's mobile communications division will not produce and sell phones anymore, referring to the long stagnation and fierce competition in this industry, according to South Korea's Yonhap News Agency.

The decision came two months after the company announced that all possibilities are open for its future operations with regard to its mobile communications division.

LG Electronics' mobile phone industry has run in deficits since the second quarter of 2015. Cumulative operating losses reached 5 trillion won (4.4 billion US dollars) last year.

It reportedly leased out "LG" which was once the world's third largest manufacturer of phones.

According to Counterpoint Research, which specializes in market research, LG was the ninth largest smartphone seller in the world, with a market share of 2% after exporting 24.7 million smartphones last year, down 13% from the previous year.


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