LG stops manufacturing smartphones

LG Electronics, the second largest home appliances maker in South Korea after Samsung, announced that it will close its smartphone division, which has been in deficit for several years, in a statement issued today.

The "LG", which was considered in the past a pioneer in the operating system "Android", cooperated in early 2010 with the company "Google" in a series of smart phones "Nexus".

However, the group faced great difficulties in increasing its sales, one of the main reasons being that it entered the market late and suffered fierce competition from Chinese competitors such as "Huawei".

LG has long been ranked among the top 10 smartphone manufacturers in the world.

But according to the specialist counterpoint company, the last time it had a market share of 3% or more was in the second quarter of 2018.

LG’s smartphone division has been in danger for 23 consecutive quarters since 2015, with a cumulative total loss of 5 trillion won ($ 4.46 billion) at the end of last year.

And "LG" in its statement that the department "failed to achieve results" amid "the increasing price competition between the various competitors in the smart phone market."

The group added that this closure allows it to "focus its resources on sectors experiencing growth such as electric vehicle components, robotics and smart homes."

And media outlets revealed talks between "LG" and the Vietnamese "Vengroup" group to sell the smartphone division, but it was reported that they failed due to a price dispute.

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