LG (Life is Good) South Korea’s electronics giant, will discontinue its smartphone business in Nigeria and other countries in the third quarter of the year.
In a statement published on its website on Monday, LG said it wants to redirect its investment.
The company said the sales of phones would continue until inventory has been exhausted, added that production of phones would stop by July 31, 2021.
The decision comes at a period the company’s mobile phone business had suffered losses in a market where iPhone, Samsung, and other top brands compete.
But LG had recorded greater success with its electronics than the smartphone segment which recorded $750.63 million loss last year.
According to the statement, the company’s management will now direct attention to segments that are much more promising such as B2B, electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and many others.
LG admitted that the smartphone market is highly competitive. In Nigeria, the company’s phone is also regulated by phone users but its electronic products are household names in the industry.
The statement read: “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, artificial intelligence, and business-to-business solutions as well as platforms and services.”