Wednesday , April 14 2021

LG Electronics is retiring from the telephone manufacturing business

Posted: 2021-04-06 10:32

LG Electronics Emancipation Telephonas Velvet. Reuters / Scanpex Neuter.

Business Inios

LG Electronics, a South Korean electronics maker, will run a loss-making business in the telephone manufacturing sector. The company is announcing such a decision due to the competition in the corporate phone market.

LG announced on Monday that it will formally withdraw from the telephone business and focus on lucrative activities such as manufacturing parts for electric cars. LG Energy Solutions, the world’s largest maker of electric car batteries, has announced that it will manufacture U.S. electric car parts by March 2025. Invests 4.5 billion. USD.

LG’s competition in the corporate phone market has been hampered by struggles with Chinese companies such as Huawei, Xiaomi or Oppo. It has strengthened the economy and the mid-level corporate telephone sector.

By then, the company was in the top tier category for Apple and another South Korean company, Samsung, the Financial Times reports.

The LG phone manufacturing business has been at a loss for some time. The company has $ 4.5 billion in experience over the past five years. US dollar loss and its share of the global phone market shrank to 2%.

LG’s revenue from enterprise phone production last year was $ 4.6 billion. USD, or 8.2% of the company’s total hair.

According to the company, the company’s withdrawal from phone production could reduce sales in the short term but strengthen competition in the long run and allow the financial situation to improve.

LG Electronics has been developing smartphones with the Android operating system for over a decade.

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