LG Electronics halts smartphone production | Financial issues

Production will end on July 31. LG has been one of the leaders in Android smartphones from Google, with the popular LG Nexus model. The company once had significant market share in the United States, but it lost that to competitors such as Apple and South Korean Samsung Electronics. LG has also faced fierce competition from Chinese manufacturers such as Huawei Technologies and Xiaomi in other markets.

Losing

LG said in January that it was studying options for its smartphone division that has been incurring losses for years. Talks have reportedly been held with a Vietnamese company about selling the phone business, but have been disrupted by disputes over the value of technology patents, according to local media.

The group will now focus more on components for electric cars, for example. Collaboration has already been entered into with Canadian Magna International in this area. Investors have speculated that this partnership could contribute to an electric vehicle from Apple.

To disappear

This will be the first time that a well-known smartphone brand has completely disappeared from the market. Well-known brands like HTC, Nokia, and BlackBerry have also disappeared from the market, but they are still sold in small numbers.

The global market share of LG smartphones is only 2%. According to market researchers, LG shipped 23 million mobile phones last year, compared to 256 million Samsung smartphones. LG also deals with home appliances such as televisions, refrigerators, washing machines, headphones, and telecom network equipment.