LG is reportedly considering exit from smartphone market

LG is reportedly considering the prospect of leaving the smartphone market after incurring over USD 4.5 billion of loss over the past 5 years.

Is LG leaving the smartphone market?

Goodbye LG smartphones?

LG CEO Kwon Bong-seok sent out a message to his staff that sheds some light on the possibility of big changes in terms of the company's smartphone operations. In the message, he stated that no matter what the direction of the smartphone operations goes, employment will still be maintained for its staff.

An LG official further expanded on that by stating that the growing competition in the mobile market urged the company to consider all possible measures that include sale, withdrawal, and downsizing of the smartphone department.

According to rumors, over 60 percent of the staff will be moved or reassigned to other departments within the company or its partners. Local South Korean media even said the LG could make an important announcement regarding this on Tuesday.

In the third quarter of 2020, LG incurred around KRW 148.4 billion of operating loss. Kwon promised to make improvements in the smartphone business by 2021. He said that LG is improving profits in the smartphone business by cutting costs and will make way to see growth in the premium smartphone market.

LG already discontinued its G-series of smartphones in 2020. The company focused on building new smartphones that became the LG Velvet and LG Wing. If you recall, LG also teased the very first rollable smartphone recently.

Confirmed: LG is shutting down its mobile business unit, will focus on other growth sectors

What do you guys think?

Source: The Korea Herald