South Korean company LG Electronics said on Wednesday it was considering all options for its loss-making mobile division, which analysts said could include shutting down its smartphone business or selling parts of the division.
According to the Korea Herald, CEO Kwon Bong-seok, in a message to staff, said it was “time for LG to pass judgment” on the struggling mobile division.
LG Electronics could withdraw from the smartphone business after losing an estimated 5,000 billion won (€ 3.743 billion) in the past five years. Faced with fierce competition, LG is struggling to keep up, whether in terms of the technical sheet of its smartphones or their price placement.
At the beginning of last year, LG had formalized the Velvet, its smartphone with water drop sensors. However, this one had difficulty convincing in the face of Chinese manufacturers who were increasingly aggressive on prices.
What could become of LG’s mobile division?
Despite fairly unattractive classic smartphones, LG is betting everything on revolutionary phones, such as the LG Wing, a smartphone with a rotating screen that was released last year. However, the LG Wing costs almost $ 1,000, and sour innovative design fails to appeal to consumers. LG has so far only sold around 50,000 units in Korea.
In March 2021, LG is expected to unveil the first rollable smartphone. As LG showed at CES 2021, its screen can adapt to the content displayed on the smartphone, allowing users to expand the display on demand. We know that TCL and OPPO are working on similar technology, but LG would be the first manufacturer to market such a device.
According to Korea Hearld, around 60% of staff could be relocated and reassigned to other business units within the company or to other LG subsidiaries. For now, it is not known if the remaining 40% will remain in the mobile branch, but it is hard to imagine LG completely leaving the sector and abandoning its know-how and years of experience in the field. LG could continue to innovate by unveiling concept phones rather than traditional smartphones.
Source : Korea Herald