On the morning of April 5th, local time, South Korea's LG Electronics convened a board of directors and officially announced the suspension of its mobile phone business.
LG Electronics said that in the face of increasing industry competition and declining performance, the company will reform its business structure, make more efficient use of internal resources, and focus on its core business.
Previously, LG Electronics announced on January 20 this year that the time has come to determine the current and future competitiveness of its mobile phone business and make the best choice, and the company is discussing the direction of future business operations.
Based on this, the outside world speculates that LG may soon announce that it will cut its mobile phone business and exit the mobile phone market.
Since LG Electronics entered the mobile phone market in 1995, it has launched a number of popular mobile phone products, and its market share once occupied the top three positions in the world.
But then LG products were gradually eliminated in the fierce market competition. From the second quarter of 2015 to the fourth quarter of 2020, there have been 23 consecutive quarters of losses, and the cumulative loss has reached 29.1 billion yuan.
(Tang Xin, headquarter reporter)