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LG Electronics says it’s going to finish manufacturing and gross sales of its loss-making smartphone division By Reuters 



© Reuters. FILE PHOTO: A person speaking on his telephone walks previous the brand of LG Electronics throughout Korea Electronics Present 2016 in Seoul

By Joyce Lee

SEOUL (Reuters) – South Korea’s LG Electronics Inc mentioned on Monday it’s going to finish manufacturing and gross sales of its loss-making smartphone division.

LG had introduced in January it was contemplating all choices for the enterprise after logging practically six years of losses totalling some $4.5 billion.

Talks to promote a part of the enterprise to Vietnam’s Vingroup fell by way of on account of variations about phrases, sources with data of the matter have mentioned.

Early to market with a variety of mobile phone improvements together with ultra-wide angle cameras, LG rose to develop into the world’s third-largest smartphone producer within the first half of 2013 behind Samsung Electronics (OTC:) and Apple Inc (NASDAQ:).

However later, its flagship fashions suffered from each software program and {hardware} mishaps which mixed with slower software program updates noticed the model steadily slip in favour. Analysts have additionally criticised the corporate for lack of awareness in advertising in comparison with Chinese language rivals.

Whereas LG at the moment ranks because the No. 3 model in North America and No. 5 in Latin America by market share, globally its share is just about 2%. It shipped 23 million telephones final yr which compares with 256 million for Samsung (KS:), in line with analysis supplier Counterpoint.

The division is the smallest of LG’s 5 divisions, accounting for simply 7.4% of income within the fourth quarter.

LG is anticipated to carry onto its cellular expertise to be used in its residence home equipment enterprise and its burgeoning automobile parts enterprise. Late final yr it launched a three way partnership with automotive provider Magna Worldwide (NYSE:) Inc that can make key parts for electrical vehicles.

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