SKorea’s LG to exit loss-making cell phone enterprise
SEOUL, South Korea (AP) — South Korean electronics maker LG mentioned Monday it’s getting out of its loss-making cell phone enterprise to deal with electrical automobile parts, robotics, synthetic intelligence and different services and products.
LG’s board accepted the shift in technique and the corporate expects to totally exit the cell phone enterprise by the tip of July, it mentioned in a press release.
LG was as soon as the third-largest cell phone maker however has misplaced market share to Chinese language and different rivals.
It was nonetheless No. 3 in North America, with a 13% market share behind Apple’s 39% and Samsung’s 30% as of the third-quarter of 2020, in response to Counterpoint Expertise Market Analysis.
LG earlier mentioned it was assessing its technique because it reported that its gross sales rose 5% from a 12 months earlier within the final quarter of 2020 however profitability declined do to sluggish gross sales of premium merchandise.
The corporate mentioned it was promoting its cellphone stock and would proceed to supply providers and assist for varied durations of time relying on the place they’re offered.
Particulars associated to jobs could be determined “on the native stage,” it mentioned.
The corporate’s shares fell 2.5% on Monday.
Picture by way of AP Picture/Lee Jin-man, File
Copyright 2021 The Related Press. All rights reserved. This materials is probably not revealed, broadcast, rewritten or redistributed.