South Korea's LG becomes first major smartphone brand to withdraw from market

As per details, LG has suffered from its own hardware and software issues and logged nearly six years of losses of some $4.5 billion.

The electronic giant in a statement said, "LG's strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics and artificial intelligence".

The statement further added that It will provide service support and software updates for customers of existing smartphones for a period of time.

The brand had made many innovations including ultra-wide angle cameras and became the third largest smartphone maker in 2013. However, it still ranks as the third most popular brand in North America but has slipped in other markets.

LG smartphones are still common in its domestic South Korean market.

According to research firm Counterpoint, LG shipped 28 million phones, which compares with 256 million for Samsung in 2020.

Company’s current global share is only about 2% and LG’s Electronics shares have risen about 7% since January.

Meanwhile, other well-known mobile brands such as Nokia, HTC and Blackberry have also fallen from lofty heights.