LG Electronics Inc. said Monday it will withdraw from the mobile business after years of money-losing performance amid intensifying competition with bigger rivals.
The South Korean tech powerhouse said in a regulatory filing that its mobile communications (MC) unit will no longer produce and sell handsets after July 31, citing its long slump and fierce competition in the industry. The decision came two months after the company said its MC division is open to "all possibilities" for its future operations. LG's mobile business has been in the red since the second quarter of 2015. Its accumulated operating losses reached 5 trillion won (US$4.4 billion) last year.