On April 5th, local time, LG Electronics, regarded as one of South Korean technology giants, announced its withdrawal from the mobile phone market.
LG Electronics began operating its mobile phone business in 1995, and its mobile phone product market share once ranked among the best in the world.
However, since the second quarter of 2015, the mobile department responsible for the mobile phone business has suffered losses for more than 20 consecutive quarters; as of the fourth quarter of last year, the cumulative loss reached 5 trillion won.
In January 2021, LG Electronics once proposed to make business adjustments, including the proposed sale of mobile business.
LG Electronics held a board meeting on April 5 to announce that due to intensified market competition and continued sluggish performance in the mobile sector, it decided to withdraw from the mobile phone market and stop the work of the mobile business department; in the future, it will adjust its business structure and concentrate its efforts on the development of core businesses.
LG Electronics said that its withdrawal from the mobile phone market may lead to a decline in the company's revenue in the short term, but in the long run, it will improve the company's financial status and operational efficiency.
LG Electronics also said that since the future smart home, robotics and other industries will need to use the sixth-generation mobile communication technology (6G), it will continue to carry out research and development of related technologies.
(Producing Li Jiali)
Editor in charge: [Zhang Aolin]