LG to Stop Manufacturing Phones in July

LG to Stop Manufacturing Phones in July

It has been tough for LG's mobile division in the past years. Decline in sales and the consequent operating losses had been a thorn in the flesh for the South Korean conglomerate. In a bid to cut losses, it has subcontracted third-party manufacturers to produce its lower cost devices, yet suffered a loss of almost $125 million in the third quarter of 2020. The division has acquired a total loss of about $4.5 billion dollars in six years. In January, an LG official explained that “since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.” It has not been very clear to the general public why LG’s mobile division has not been able to perform well in the market while Samsung has dominated the android market for years....
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