In the era of flip phones, LG Electronics was king. “Life's Good”, was how the South Korean group’s marketing slogan put it. But the stronghold made LG too comfortable. Its decision to enter the smartphone business later than peers was a costly mistake.

After 23 consecutive lossmaking quarters, LG is now quitting the mobile industry. It is the right decision. Years of catch-up spending pushed LG to become the third-biggest smartphone maker in 2013. But success was shortlived. The company fell behind on new releases and dropped out of the top seven last year, with about 2 per cent of the global market.

LG’s mobile unit accounts for just 8 per cent of sales but most of the group’s losses. There is little hope of improvement. The gap has widened between the high-end segment, in which Samsung and Apple hold 37 per cent of the market, and the five Chinese makers at the low end. Other smartphone sellers account for just 16 per cent of total sales, down from 31 per cent three years ago, according to Counterpoint.