LG, the South Korea-based electronics manufacturer, will soon stop producing new mobile phones worldwide, according to a press release from the company published on Monday.
The Seoul-based firm, following a unanimous board vote Monday, said it would halt mobile phone production and sales by July 31.
The "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," the company said in a statement.
LG said it will continue to sell handsets until the inventory lasts and will provide software support for existing lineup of smartphones for a certain period of time.
The company’s smartphone business has been unprofitable since the second quarter of 2015, with a total operating loss of more than $4.4 billion during the period, according to the Dow Jones data.
LG was one of the first companies to install the Android operating system on their mobile devices. The mobile business represented about 8% of LG’s total annual revenue last year.