Once considered a rival to fellow South Korean manufacturer Samsung, LG’s recent high-end smartphones have struggled to compete, while its more affordable handsets have faced stiff competition from Chinese rivals, The Verge writes.

The company had previously said it hoped to make its smartphone division profitable in 2021, but that dream is now dead in the water.

The company says its smartphone resources will now be channeled towards electric vehicle components, robotics and artificial intelligence, among others.

“LG’s 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, and artificial intelligence.

“It will also focus on business-to-business solutions as well as platforms and services,’’ the statement reads.

LG wants to “continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas."