South Korean Electronics Company LG has announced that it is exiting the Smartphones market citing poor sales and stiff competition in the market.
LG becomes the first major Smartphone company to quit the market which will see the company focus on growth areas like smart home appliances, electric vehicle components and connected devices.
The pioneer of the Smartphone industry has seen sales decline, once a dominant company, LG has been left with a global market share of around 2%. The division of mobile has been making losses in the last six years despite innovations and marketing techniques applied to make the market share recover.
The company has been facing competition mainly from its South Korea counterpart Samsung Mobile, America’s Apple and China’s Huawei. In North America, LG has been the 3rd most selling Smartphone brand with 10% of the market share behind Apple and Samsung.