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.
