Time.news – LG Electronics will no longer produce smartphones due to the excessive losses recorded by the business unit. This was announced by the South Korean electronics giant in a note. The company, one of the pioneers of the Android operating system, in early 2010 had collaborated with Google on the birth of the Nexus series. But the sales of the devices have never taken off and in recent years the fierce competition from Chinese companies such as Huawei has also added to the difficulties of clearing a path in the smartphone market.
LG has long been ranked in the top 10 smartphone manufacturers in the world. But, explains a report by Counterpoint, the last time it managed to have a market share above 3% was in 2018. For 23 consecutive quarters, or rather since 2015, the LG smartphone division has been in the red, for a total loss estimated at around 5,000 won, or 3.8 billion euros, at the end of last year.
The division “failed to deliver” in a context of “increased price competition between various competitors in the entry-level smartphone market,” the company said in a statement. The closure will divert a part of resources in research and development “on growth areas such as components for electric vehicles”, explained the company, but also “robots and smart homes”.