According to DongA Ilbo, LG Electronics Inc. can close its mobile communication business. The company attempted to sell the unit, but negotiations with Volkswagen of Germany and Vingroup JSC of Vietnam failed, according to the report.
The news follows LG Electronics CEO’s announcement that the company was exploring all options to cover its loss-making business.
the LG CEO told the employees in an internal memo, “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…The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business” .
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LG recently announced the Explorer Project, which aims to provide phones with fully reimagined form factors. The LG Wing was the first phone to be released as part of the project, and it featured T-shaped swiveling displays. LG debuted a rollable smartphone at this year’s Consumer Electronics Show. LG denied it had put the rollable phone on hold, despite reports of a shutdown.
According to the latest article, LG has halted production of rollable phones as well as a scheduled first-half rollout of new handsets. Employees will be officially informed of the company’s decision as early as April.
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LG was, however, once one of the world’s leading smartphone manufacturers. Apple and Samsung, on the other hand, quickly ate into the company’s market share. According to a survey, LG has lost nearly $4.5 billion over the last five years.
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LG’s impending departure is unlikely to have a significant effect on the staff. Earlier this year, the company’s CEO told them that the changes would not result in job losses. “Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” he stated.