(PHOTO: REUTERS)

Its decision to pull out will leave its 10% share in North America, where it is the No. 3 brand, to be gobbled up by smartphone titans Apple and Samsung Electronics.

LG has recorded nearly six years of losses totalling some 4.5 billion USD. Its flagship models suffered from both software and hardware mishaps which combined with slower software updates saw the brand steadily slip in favour.

Dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices and smart homes, it said in a statement.