LG ends its smartphone business due to losses
The smartphone division is expected to close by July 31st
Stocks impacted: LG Electronics Inc. (066570)
The South Korean electronics giant said on Monday it would close down its loss-making smartphone business. The division has recorded a total loss of approximately $ 4.5 billion over six years. LG’s smartphone division is expected to close by July 31st although the inventory of some existing models may still be available after that. The firm’s focus is now expected to shift to the more profitable home appliance and TV divisions. Earlier, negotiations to sell part of the business to the Vietnamese Vingroup failed due to different conditions. According to the regulatory filing, with the termination of the mobile communications business, the company’s sales could decline in the short term, but they expect it will improve their business portfolio and financial structure in the mid- and long-term.
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