LG may succeed in taking the lead in the industry of home appliances, televisions, and monitors. At the same time, company’s phones are not much popular in the world of smartphones. Now LG is planning to shut down its mobile business.
The company’s official said;
“Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice”, an LG official told the publication. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business”.
LG has confirmed the authenticity of the memo to The Verge.
“LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021,” said an LG spokesperson. “As of today, nothing has been finalized.”
About 60% of employees will be transferred to other LG affiliates, The Korea Herald reported.
Recent years aren’t good for LG as the company has troubles. By now, LG had incurred losses over its phones for 23 consecutive quarters, as per a new report. It is losing about 5 trillion won ($4.5 billion) during the last five years and holding just a two percent global market share.
The company is not stopping to entice smartphone buyers with its innovative new designs. The device differs from all of the evolving displays that appeared in the past few years. It seems that the company has taken the rolling tech found in its rollable TVs and brought it to its mobile series rather than using a folding mechanism similar to the Galaxy Fold.
Moreover, the LG Wing is included in the list of unique-looking phones emerging in 2020. It wasn’t entirely sold due to limited use case scenarios regarding flip display. The device also made too many compromises to defend its steep price tag.
However, it remains to determine whether the company will continue to expand its phone series in 2021.