LG is considering exiting the smartphone market in 2021. After launching the dual-screen LG Wing and also teasing a rollable phone. The company has lost nearly $4.5 billion in the last five years, competing in the smartphone market. It has been struggling in competing against its rivals and even lost its spot.
According to a recent report from Reuters, it is planning to shut down the manufacturing units. The CEO of LG Kwon Bong-Seok has sent an internal memo to the employees regarding the smartphone business’s significant change. The Korea Herald reports that the internal notice was sent to employees on Wednesday. The words from an LG official said, “Since the competition in the market of mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice.”
The company is considering all possible measures, sales, withdrawal, and downsizing of the smartphone business. Regardless of the change in the smartphone business, employment will be maintained. The report also suggests that LG plans to move 60% of the employees to different business units. There is no word regarding the remaining 40% of the employees. Nothing has been confirmed till now.
LG is also thinking of going into different ventures for some better results. It has recently has joined hands with an automotive company in manufacturing the parts for it. The company in the CES 2021 also showed a rollable phone smartphone. This smartphone looks similar to its rollable smart TV. If this is true, then that might be the last phone from LG that we might get.
Last year LG brought us some innovative dual-screen designs Velvet and LG Wing. These phones aim at getting a unique experience for gadget lovers. The reports of their operation in losses for 22 consecutive quarters came soon after CES 2021.
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