LG Electronics Inc. 066570, -2.52% to exit its unprofitable smartphone business after years of struggling to compete with industry leaders Apple Inc. AAPL, + 1.68% and Samsung Electronics Co. 005930, + 0.71%, as well as with the fast-growing Chinese. rivals. It was not an unexpected move, after years of speculation about a pullback and after CEO Kwon Bong-seok declared in January that all options were being considered regarding the fate of the mobile division.
The Seoul-based firm, after a unanimous board vote on Monday, said it would halt production and sales of mobile phones by July 31. LG had once been the world’s third-largest phone maker by shipments and remains the largest American supplier after Apple and Samsung. But LG’s overall phone business has weakened in the last six years. It has been in the red for 23 consecutive quarters, with cumulative losses exceeding $ 4.4 billion. An expanded version of this article appears on WSJ.com. WSJ.com Popular Stories: