The South Korean company now plans to focus on other growth areas, including smart homes and robotics.
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April 5, 2021 2 min read
South Korean company LG announced in a press release today that it has shut down its wireless business, citing “the incredibly competitive wireless sector”.
The company, once the third largest smartphone brand in the United States, was largely unable to keep up with its biggest competitors Samsung and Apple. According to Reuters, LG had owned about 10% of the cellular market in North America and 2% of the world market, but recorded losses due to software and hardware glitches for almost six straight years. Those losses amounted to $ 4.5 billion.
Related: LG Reveals Puricare Air Purifier Face Mask
The company also had marketing issues compared to its Chinese competitors like Xiaomi, Oppo and Vivo, Reuters added.
“LG’s strategic decision to leave the incredibly competitive wireless sector enables the company to focus resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions and platforms Service, “the company said in its press release, adding that its cell phone unit settlement is expected to be completed by July 31.
The company said it will continue to provide service support and software updates to existing customers “for a period that will vary by region.” It would also work with mobile technologies like 6G and keep its 4G and 5G core technology patents.
As CNN notes, LG was perhaps best known for its innovative designs in the smartphone market – although not every design caught on with consumers. The company’s shares in South Korea fell 2.5% on today’s announcement.