South Korean electronics manufacturer LG has announced it is exiting the smartphone market and will immediately begin shutting down smartphone manufacturing. LG currently has 10% of the U.S. smartphone market and produces 23 million smartphones per year.
In making the decision, LG said by July 31, 2021 it will be completely done with smartphones. The company has lost money on its smartphone division for the last six years with losses totaling $4.5 billion. In North American, LG is the third largest smartphone maker. The company pioneered some early advancements in the smartphone world and was the first to introduce ultra-wide angle cameras. In recent years, its smartphones have lagged behind competitors with slower updates, and suffering more problems.
LG said in a statement that by closing the smartphone division, it will allow the company to focus on its core money making areas such as electric vehicle components, connected devices and smart homes. LG said they will continue to provide service and support for current smartphone customers for up to three years, depending on the model and location.