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Why is LG shutting down it's smartphone business?
LG, one of the pioneers in smart phone manufacturing has recently announced to shut down its loss-making smartphone business within July of 2021. The company has reportedly suffered losses of around $4.5 billion in the last 5 years. The company is apparently planning to utilise its resources in other sectors such as electric vehicle components, connected devices, AI, robotics, smart homes and B2B solutions.
The company really seemed to struggle against the likes of brands like Apple, Samsung, Xiaomi and Oppo. Citing the market as too competitive, the South Korean firm has made this decision. However, the firm continues to sell the smartphones till the inventory lasts. They also claim to provide software update support to customers till a limited time.
Please comment down below, how you think this is going to affect the other brands.
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