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The mobile space just got less competitiveINTL

The mobile space just got less competitive

Let’s all take a minute for LG Electronics, which just became a casualty in the ruthless smartphone industry. The South Korean tech giant announced it will shut down its mobile phone business progressively by the end of July, as it wants to focus its resources on other areas such as robotics, AI, electric vehicles, connected devices, and smart homes.

Back in the day, LG was one of the most innovative companies in the market (we were rocking a pink LG flip phone about 15 years ago), pioneering Android software and rolling out innovative products such as ultra-wide-angle cameras.

But, sadly, its smartphone business became a real burden over the past six years (with around $4.5b in losses – that’s a hard one to swallow!). However, given that only 8% of the firm’s sales come from phones these days, LG seems to be making the right choice by cutting its losses short.

why it matters
LG's exit from the phone industry will allow for rivals such as Apple (AAPL) and Samsung to fill the vacuum — although, the latter, which also hails from South Korea, is expected to benefit the most since its prices are more competitive with LG’s.