South Korean technology group LG Electronics will stop producing smartphones and focus on parts for electric cars.
LG points to fierce competition in the mobile phone market and ongoing losses in those activities for the company.
Production will end on July 31st. LG was one of the pioneers with smartphones running Google’s Android operating system, with the popular LG Nexus model.
The company once had a significant market share in the United States but has lost that to rivals such as Apple and South Korean Samsung Electronics.
LG said in January that it is looking at options for the smartphone division. Talks were reportedly being held about a sale of the phone business, but differences broke them of opinion over technology patents’ value, local media said.
The group will now focus more on components for electric cars.
Collaboration has already been entered into with the Canadian Magna International in that field. Investors speculated that this partnership could contribute to an Apple electric car.