Samsung Electronics Co Ltd agreed to sell its fibre optics operations to U.S. specialty glass maker Corning Inc, exiting another non-core business to focus on shoring up underperforming key areas like smartphones.<\/p>\n
Terms of the sale, including plants in China and South Korea, weren’t disclosed. Announced by both parties on Tuesday, the South Korean firm’s second exit from a business line this quarter comes as it braces for its lowest annual profit in three years, squeezed by stiff competition.<\/p>\n
The world’s top maker of smartphones has been caught between Chinese rivals like Xiaomi Technology Co Ltd [XTC.UL] at the low end and Apple Inc’s iPhones at the top. Samsung Electronics’ share of the global smartphone industry has shrunk year-on-year for the last three quarters.<\/p>\n
“We have decided to sell our fibre optics business, in order to focus on our core business areas,” a Samsung Electronics spokeswoman said. The company declined to comment on how much revenue the division generates.<\/p>\n
The firm also said in October it will halt its light emitting diode lighting business outside of its home country, which was also considered a non-core business.<\/p>\n
Corning, which supplies glass for Samsung and Apple Inc smartphones, said the deal will strengthen its fibre optics business in the Asian market.<\/p>\n
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