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LG is officially shutting down its smartphone business

April 5, 2021. Summarized by summa-bot.

Compression ratio: 41.4%. 2 min read.

LG is getting out of the "incredibly competitive" business of making smartphones.

Hong Kong (CNN Business)LG is getting out of the "incredibly competitive" business of making smartphones.

LG was once one of the world's top smartphone makers, even making the top three back in 2013, according to research firm Strategy Analytics.

As of last year, LG was no longer even among the top seven players globally, according to Counterpoint Research, even though it is still the third most popular smartphone vendor in the United States, after Apple (AAPL) and Samsung (SSNLF), according to market research firm Canalys.

"LG leaves a 'small vacuum' of global market share of under 2%," Neil Shah, a partner and vice president of research at Counterpoint Research, told CNN Business.

LG had already warned about the fate of its phone business in January, saying that it was looking at all options, including a potential sale of the unit.

The decision to call it quits on Monday was met with an outpouring of nostalgia on social media, where users shared photos of their first LG phones and reminisced over the company's willingness to innovate.

(LG's V40 phone has been widely credited with introducing the feature to smartphones. )

Two years later, the company wowed experts with the high-end photo-taking capabilities of its LG G4.

And last year, LG unveiled the WING 5G, a 5G-enabled smartphone that came with two screens.

LG said at the time that the device would launch sometime this year, though the company confirmed to CNN Business on Monday that it won't now be released.

"For years, [the] LG smartphone was known for its unconventional and innovative features," Shengtao Jin, a research analyst at Canalys, told CNN Business.

"Core technologies developed during the two decades of LG's mobile business operations will also be retained and applied to existing and future products. "

LG will enjoy better growth prospects overall once it does away with the mobile business, said Shah, who described the move as "removing the thorn" from the company's "feet. "

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