LG stopping production of smartphones

LG Electronics will withdraw from the mobile business after years of money-losing performance amid intensifying competition with bigger rivals, Report informs referring to Yonhap News Agency.

The South Korean tech powerhouse said that its mobile communications (MC) unit will no longer produce and sell handsets after July 31.

The decision came two months after the company said its MC division is open to "all possibilities" for its future operations.

LG's mobile business has been in the red since the second quarter of 2015. Its accumulated operating losses reached $4.4 billion last year.

LG, once the world's third-largest handset maker, reportedly had talks with Vingroup of Vietnam and Volkswagen of Germany to sell the mobile business, but the talks fell through, according to industry insiders.