After losing about $ 4,5 billion over the past five years, the company LG smartphone struggled to compete with its rivals. This is one of the reasons why the company is now considering withdrawing from the smartphone market.
The CEO of LG, Kwon Bong-seok has informed them employees that the company is considering making major changes to its smartphone business.
In an internal note, Kwon Bong-seok briefed his staff on Wednesday, implying a change of direction for the company's smartphone business. “As the competition in the global mobile market devices becomes more intense, it's time for LG to make a cold decision and the best choice", Says an LG official in a statement to The Korea Herald. "The company is considering all possible measures, such as selling, withdrawing and reducing the size of the smartphone business."
LG confirmed the internal note in a statement to The Verge, noting that nothing has been decided yet. "LG Electronics is committed to taking whatever decision is necessary to address the challenges of its mobile business in 2021," said a company spokesman. "To date, nothing has been finalized."
Prior to this note, a report from the Korean store had been released TheElec earlier this month, which claimed that LG plans to leave the smartphone business. LG called the report "completely false and worthless" in a statement to Android Police just a week ago.
The company tried several times with the G7, V40, G8 and V50 to compete with Samsung and Huawei, but it was not enough to push its market share in the right direction. LG's latest Velvet and Wing smartphones tried to try something new, but none of them had the impact the company wanted.
Samsung, Huawei, Xiaomi, Vivo and Apple continue to dominate global smartphone markets, according to IDC. The company is now turning to its Rollable phone, in an effort to differentiate itself from the competition. LG promised Rollable device It's real and will be released in 2021, but with the company rethinking its mobile plans, it could be one of the last LG phones to be released.