South Korean tech giant, LG Electronics has announced that it is getting out of the phone manufacturing business after making huge losses in that department for many years now.
The company said in a statement that its smartphone division is expected to be wound down by July 31, although it may continue to sell some of its existing models after that.
This will mark the end of a leader and pioneer in the smartphone market, particularly in the Android world.
The “strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions,” the statement said.
LG was once one of the world’s top smartphone makers, even making the top three back in 2013, according to research firm Strategy Analytics.
But the company’s devices have since dwindled in popularity, particularly as Chinese brands such as Huawei, Xiaomi and Oppohave surged around the world.
As of last year, LG was no longer even among the top seven players globally, according to Counterpoint Research, even though it is still the third most popular smartphone vendor in the United States, after Apple (AAPL) and Samsung (SSNLF), according to market research firm Canalys.
Over the years, LG has has a great run, releasing some very exciting handheld devices, some of which are the LG Optimus series – 2X, 4X, and 3D (one of the first phones with double camera), LG KE850 Prada, LG G3, and G5 series, LG BL40 New Chocolate series, LG Nexus series, LG G-Flex, LG V20, and many more.
Meanwhile, analysts have predicted that as LG leaves a small 2% market share for the taking, Samsung is the most likely player to make those gains.
LG joins the likes of Blackberry, which was a major leader in the global smartphone market with its own operating system and popular service like the BBM.
But the company failed to take advantage of the emergence of Android and went downhill till it collapsed.
