South Korea’s LG Electronics manufacturer is closing its loss-making mobile phone business.
The board of directors approved the move on Monday, LG Electronics said in a statement released in Seoul.
Brand Spur Nigeria learnt that Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by smartphone titans Apple and Samsung Electronics.
The shutdown of LG’s mobile phone sector is expected to be completed by the end of July.
“LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics and artificial intelligence.
“It will also focus on business-to-business solutions as well as platforms and services,’’ the statement added.
LG wants to “continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas’’.
Core technologies developed during the two decades of LG’s mobile business operations are to be retained and applied to existing and future products, the company said.
LG’s withdrawal from the smartphone business had been on the horizon for some time.
In South Korea, the division’s employees will be moved to other LG Electronics businesses and affiliates while elsewhere decisions on employment will be made at the local level.
LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region, it added.