South Korean LG throws in the towel. After years of losses, 3.8 billion euros in the last six years, the company has decided to close its mobile telephony division, unable to find a buyer and unable to prevail in an “incredibly competitive” market, it announced. LG has not specified how many jobs will be lost, something that will have to be detailed locally, although it expects to close the division by July 31.
The company has also announced that it will not attend the Mobile World Congress in Barcelona this summer because “there is nothing to present.”
The decision, approved this Monday by its board of directors, buries a business in which it came to stand out with pioneering advances, such as the deployment of Android and ultra-wide-angle cameras, and in which it ranked as the third global manufacturer in 2013 , behind Samsung and Apple. But hardware and software failures and slow updates made it gradually lose ground. Analysts also blame it for poor marketing.
The company only has a 2% share
To all this is added the emergence of Chinese brands, such as Xiaomi, has given the last straw. It currently had a global share of 2%, with 23 million phones sold last year, and 10% in the US, which will be followed by Apple and Samsung.
The company may focus on other sectors with more experience such as components for electric vehicles, connected devices, artificial intelligence, robotics or home automation, it said in a statement. In it, the future of 6G stands out above all with the idea of applying it in other business areas.
The company will keep its current inventory for sale, with the idea of definitively liquidating the business by the end of July, and will continue to provide service support and software updates to customers based on their region.