In a recent announcement, LG Electronics Inc. (LG) stated that it is closing its mobile business unit due to the global “incredibly competitive” mobile phone sector.

The decision, approved by board members yesterday, will enable the company to direct resources in other 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 electronics company will continue to provide service support and software updates for customers of existing mobile products for a period of time which will vary by region, the statement said.

“LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level,” the statement wrote.

In 2013, LG was the world’s third-largest phone manufacturer, according to Reuters. However, poor reviews, legal action related to software problems that rendered some devices unusable, and an inability to capture interest with phones such as the “Banana Phone,” led the company to log in nearly six years of consecutive losses totaling about $4.5 billion, according to calculations by Reuters.

The mobile business unit’s wind down is expected to be complete by July 31, but LG notes that some inventory for current models may still be available for sale after that date.

LG states that it will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas.

They will also be using the core technologies developed during the two decades of LG’s mobile business operations on current and future products.

LG continues to be a major player in electronics, with around 16 percent of the global TV market in 2020, according to the research firm Omdia.