LG has announced today that it is shutting down the smartphone business sector of the company to focus on other areas such as electric vehicle components, robotics, Artificial Intelligence and other business to business solutions.
While the existing phones will remain on sale and product support is expected to continue for a period of time, LG expects to have completed the business closure by the end of July this year.
LG, the former third-largest smartphone maker, has been struggling for market share in the smartphone industry as it had been incurring losses for six years in total to the tune of $4.4 billion. Last year, it sold a meagre 23 million evices compared to Samsung’s 256 million.
Experts predict that poor marketing and lack of a clearly defined identity was the bane of LG’s smartphone business. The smartphone business was originally competitive and LG though had some innovative streaks, could not keep up.