After years of trying to keep pace with the titans of the smartphone business, LG is finally thinking of biting the bullet. Kwon Bong-Seok, CEO, LG Electronics has hinted at changes to its loss-making mobile division.
In an internal memo to the employees, he said, “In the global market, competition in the mobile business including smartphones has gotten fiercer. LG Electronics believes we have reached the point where we need to make the best decision about our mobile phone business. The company is considering all possible measures, including the sale, withdrawal, and downsizing of the smartphone business”.
Whatever be the future course, he assured that the existing personnel will be retained. But, 60% of them will be transferred to the other business units (with no word on the rest though).
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LG has confirmed the report but underlines that “nothing has been finalized”.
This will be an understandable, albeit unfortunate course of action. You see the company’s mobile division has had 23 consecutive quarters of losses amounting to around $4.5 billion. And analysts reckon if LG retires its smartphone business, it’s market cap may jounce by an estimated ₩4 trillion. Not just that, this will also allow the brand to focus better on its automobile and other ventures and visions.
And if it does happen, LG Rollable might very well be the last of the brand’s smartphones we will get to see.
Update: LG could shut down its mobile business as early as April 2021. It has also apparently ceased the plans for LG Rollable and LG Rainbow mobile phones (Source: Donga Ilbo).