LG stated that the company will shut down its mobile phone business amid intensified competition and years of losses. According to the report, LG mobile phones can neither compete with Apple or Samsung for the high-end market nor can they beat chinses mobile phone brands in the low-end market.
LG ended its mobile phone business not unexpectedly, as LG’s main markets for mobile phone products are in South Korea, Europe, and Southeast Asia, its European and South Korean markets are expected to be replaced by Samsung.
And the emerging mid-to-low-end mobile phone market in Southeast Asia is expected to be replaced by OPPO. The shutdown of LG’s mobile phone business is expected to be completed before July 31 this year, after that some existing models of inventory may still be sold.
Since the second quarter of 2015, LG’s mobile phone business has been at a loss. Last year, the cumulative operating loss reached 5 trillion won (approximately 29.085 billion yuan).