LG announces it's exiting the smartphone business

South Korean multinational electronics company LG recently confirmed that it will be exiting the smartphone business.

The company's existing phones will remain on sale, and it will continue to support its products "for a period of time which will vary by region." According to The Verge, LG said in a statement that this decision will "enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services." The company has yet not said anything about the possible layoffs due to this decision, except that "details related to employment will be determined at the local level." LG said that it expects to complete the smartphone business' closure by the end of July this year.

Following the division's huge losses over the past five years, this move had been rumoured for several months now.

Once considered a rival to fellow South Korean manufacturer Samsung, LG's recent high-end smartphones struggled to compete, while its more affordable handsets faced stiff competition from its Chinese rivals.

LG had previously said it hoped to make its smartphone division profitable in 2021.