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LG to exit smartphone business, internal memo hints

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Apparently, it looks like LG is finally ready to give up its smartphone business.

It’s no secret that LG smartphones have struggled to compete with Samsung and the tons of up-and-coming Chinese phone manufacturers. In fact, it appears that the company has lost USD4.5 billion (around Php216.1 billion) in the last five years because of this.

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That’s despite its imaginative and innovative smartphone concepts that they keep on bringing to the table, like the LG ThinQ 5G and its dual-screen, the LG Velvet’s clean design, and the LG Wing with its swiveling screen.

As per The Korea Herald, LG CEO Kwon Bong-Seok has sent out an internal memo last Wednesday, which hints at some drastic changes in LG’s smartphone business.

In a statement to Korea Herald, the company said that due to the fiercer competition in the global mobile market, it’s time for the company to “make a cold judgment and the best choice.”

It appears that the company is considering all possible measures, which may include the “sale, withdrawal, and downsizing” of its smartphone business.

LG did confirm to The Verge that the memo was genuine. LG Electronics’ management team is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021. Albeit, nothing has been finalized as of yet.

This latest development back the previous report from TheElect, also from South Korea, saying that LG is indeed planning to leave the smartphone business. The report has been taken down as LG branded it as “completely false and without merit.”

With that, it’s not clear if the LG phones that are in the pipeline will push through, like the rollable smartphone they teased in CES 2021. If LG’s smartphone business does meet its end, releasing this cool new smartphone is a nice way to go.

Via: The Verge

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