In the mobile market, competition is high and LG has evidently struggled to remain a prominent band recently. As such, reports have arrived that the company is going to make an announcement about shutting down the smartphone division.
The report originally came out in The Korea Times where it said that LG will make the announcement on 5th April after incurring losses over the previous few years.
The Struggles Faced By LG Mobiles
The reports stated that LG electronics have been only losing money in its smartphone business. Consequently, the company has begun the process of transitioning its employees in the mobile communications department to other departments and business units.
The company has been suffering losses in operation since 2015. However, the company has brought immense innovations to the industry through the years. In spite of this, LG had failed to bring the department out of the red.
Furthermore, the company reportedly made attempts to sell off the department. Volkswagen and Vingroup JSC from Vietnam had expressed interest in the offer. However, no conclusions were evidently reached.
Even in January, a company representative stated that there was no intention of shutting down the smartphone division. Moreover, there were even reports of the company developing new innovations like a smartphone that could be rolled up. Teasers of such a technology were released as well. The industry expected the LG Rollable to be the first to feature a resizable transforming screen.
As such, should the announcement happen, it would also mean that its plans for 2021 have all been scrapped. Android’s market will suffer a heavy loss in LG’s departure as the company had a hand in creating phones such as the Pixel 2 XL and the Nexus 5.
The company representative only stated that the official announcement will answer the final question.
