What you need to know
- It was reported earlier in the week that LG would be exiting the smartphone market after years of underperformance.
- The company was said to be selling its mobile business wholesale at the end of January.
- LG has denied the rumor, calling it untrue.
LG's mobile division has been losing money steadily over the years. Whether due to a string of underwhelming devices, a reputation for poor QA, or just poor corporate strategy, the former smartphone giant has found itself an also-ran in the market.
A report this week emerged from the Korean site The Elec, claiming that LG's mobile business was if more dire straits than thought. The company was planning to sell it off by the end of the month and would make this announcement by the 26th. Or so the report went.
Speaking to XDA, LG denied the report strongly in unambiguous language. LG's Ken Hong said: "Definitely untrue, more speculation and rumors." The Elec has since then pulled the original report from its site.
So there you have it. LG isn't shutting down its mobile business. Reports from stronger sources like Reuters indicate a desire and willingness to double down in making novel, more distinctive products while outsourcing less ambitious phones to Chinese ODMs. The company will still make regular devices that compete with some of the best smartphones like the Velvet. It also has its experiments in the LG Wing, and it showed off a rollable phone this CES.
The 2020 LG flagship tries something different
LG tried something bolder than usual with the Velvet, and while it didn't 100% pay off, it's a good step in the right direction compared to where the company was headed. The LG Velvet touts a gorgeous design, capable specs, and a fun Dual Screen accessory. Factor in the low price tag, and it could be worth a look.
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