LG scraps its smartphone business as losses mount

 LG Electronics said on Monday it would close down its loss-making smartphone business.

In January, the South Korean electronics giant said it was looking at all options for the division after almost six years of losses totalling around $4.5bn (£3.3bn).

LG had made many innovations including ultra-wide angle cameras, rising to third largest smartphone maker in 2013.

But bosses said the mobile phone market had become "incredibly competitive".

"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," it said in a statement.

Last year it shipped 28 million phones, which compares with 256 million for Samsung, according to research firm Counterpoint.

The smartphone business is the smallest of LG's five divisions, accounting for just 7.4% of revenue. Currently its global mobile phone market share is about 2%.

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