What you need to know
- LG might be closing down its smartphone business for good.
- The company had tried and failed to find buyers for its once-thriving mobile business.
- LG is said to be sharing its decision by April.
LG's smartphone business might be done for, according to a new report from the South Korean trade Donga (via Bloomberg). The company, unable to find a buyer, is said to be strongly leaning towards shuttering the mobile arm of its business.
According to the report, LG has already pressed pause on its entire 2021 smartphone lineup, including the sequel to the LG Velvet and its rollable phone. The company had been in talks with the Vietnamese Vingroup as well as Volkswagen, but negotiations fell through.
LG is said to be considering a pivot to other industries in which it currently dabbles, including household appliances, automobiles, and other more profitable businesses.
The decision isn't out of left field. LG's CEO had hinted that nothing was off the table in January. An official had shared the following statement as well:
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 had floundered around the market somewhat aimlessly over the past half-decade, making phones that never quite struck out. Sure, it made one of the best Android phones we've seen in the Velvet, and even a wild, weird and wacky one like the LG Wing, but it also picked up a reputation of unreliability with both hardware and software. While the company's rollable phone could have had some appeal, LG clearly doesn't think it'll be enough to need the needle.