LG may shut down its smartphone business
According to Korean publication dongA, the decision comes after company has failed to find a buyerEuropost
The history of LG’s smartphone division has been one of constant ups and downs, but in the last few years, failure and tragedy have prevailed. Their constant attempts to innovate and shake things up with super weird, but also cool concepts like the LG Wing or the LG Rollable have fascinated fans, tech geeks and made headlines, but it seems that they have failed to really make a profit.
As a result, there have been a string of reports that the company is quitting the smartphone business or at least scaling it back. The latest report on the case even suggests that the worst-case scenario is the likely outcome for its mobile division. It comes from the Dong-A Ilbo South Korean newspaper, which claims that LG has been in talks with companies from the likes of Volkswagen and Vietnam’s Vingroup JSC for potentially selling off their money-losing smartphone division, but these talks have, so far, seem to have failed. The reason? With around 1% global market, the asking price was just too high.
If they don’t manage to find a buyer, then LG might be forced to throw the towel and kill off their smartphone business completely. According to dongA, the company has already scrapped LG Rollable and has shelved all of its new smartphone releases for the first half of 2021.
But there has been no final decision for the long-term future of the division. It may be announced as soon as early April. If things keep being like that, the company will then try to redistribute employees from its mobile division to the Household Appliances and Automotive divisions, along with other subsidiaries such as LG Energy Solution.
Nevertheless, this would be a huge loss for the Android ecosystem. While LG hasn’t been doing well in the last years in terms of sales, they’ve been a historically major player in the Android ecosystem, putting out legendary smartphones such as the LG G2. They were also the makers behind other iconic phones such as the Nexus 5, the Nexus 5X, and the Google Pixel 2 XL. They even had serious ambitions for 2021, including a smartphone with a rollable display, which even got Bluetooth SIG certification.