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The South Korean company LG Electronics is giving up its loss-making smartphone division.

The production and sale of its mobile devices will be discontinued, the electronics group announced on Monday.

LG had already announced in January that it was considering all options for the deal.

Talks about the sale to the Vietnamese vingroup failed due to differences over the terms, people familiar with the matter told the Reuters news agency.

In the past six years, the manufacturer made losses totaling around $ 4.5 billion with its smartphone division.

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With a series of innovations, the company rose to become the third largest cell phone manufacturer in the world in the first half of 2013, behind Samsung and Apple.

But due to software and hardware errors in the top models, the brand slipped further and further in the favor of buyers.

Analysts also criticized the company for a lack of marketing expertise compared to Chinese rivals.