LG to exit phone industry after unprofitable sales

Losses in the mobile phone business have driven the South Korean electronics company LG to quit the production of phones and instead focus more on profitable items including electric vehicle components, robotics and artificial intelligence. 

Following approval from the company's board, LG on Monday announced the changes and expects to fully exit the phone industry by July. The company's shares fell 2.5% on Monday after the announcement, according to the Associated Press.

"LG has recently made the difficult decision to close its mobile business to focus on other businesses that will provide new experiences and value for the consumers," the company said.

Once the third-largest phone maker in the world, LG lost traction when Chinese and other competitors gained momentum and overtook the phone market. However, the company was still the third-largest in the U.S after Apple's 39% market share and Samsung's 30% as of the third-quarter of 2020.