What you need to know
- LG has apparently decided to quit the smartphone market.
- An official announcement regarding the decision could be made as soon as next week.
- LG will be relocating its mobile communications employees to other divisions.
LG has apparently decided to wind its mobile communications division and relocate its employees to other business units, according to a new report from The Korea Times. Industry sources told the publication:
The industry sources added that LG will make an official announcement about the decision at its upcoming board meeting on April 5.
When asked for a comment, an LG Electronics spokesperson said:
Back in January, LG confirmed that it was considering "all possibilities" for its smartphone business — including sale, withdrawal, and downsizing. The company had held talks with Vietnamese conglomerate Vingroup and Volkswagen on a possible sale of its mobile business division, but the negotiations fell through. Since it couldn't find a buyer, the company is said to have recently decided to pull out of the smartphone market altogether.
Not only has LG's market share in the global smartphone market seen a significant decline over the last few years, but the mobile business division has also not posted a profit in over five years. Even though LG launched innovative devices like the Wing to challenge the best Android phones last year, it hasn't been successful in attracting consumers.
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