LG is contemplating exiting the smartphone market in 2021. After dropping round $4.5 billion over the previous 5 years, LG’s smartphone enterprise has been struggling to compete with rivals. Now LG CEO Kwon Bong-seok has notified workers that the corporate is contemplating making large modifications to its smartphone enterprise.
The Korea Herald reports that Kwon Bong-seok despatched out an inner memo to employees on Wednesday, hinting at a change in route for LG’s cellphone enterprise. “For the reason that competitors within the international marketplace for cellular units is getting fiercer, it’s about time for LG to make a chilly judgment and the only option,” says an LG official in a press release to The Korea Herald. “The corporate is contemplating all doable measures, together with sale, withdrawal and downsizing of the smartphone enterprise.”
LG confirmed the interior memo was real in a press release to The Verge, noting that nothing has been determined but. “LG Electronics administration is dedicated to creating no matter determination is critical to resolve its cellular enterprise challenges in 2021,” says an LG spokesperson. “As of as we speak, nothing has been finalized.”
This new inner memo follows a now-deleted report from Korean outlet TheElec earlier this month that claimed LG was planning to exit the smartphone enterprise. LG branded that report “fully false and with out benefit,” in a statement to Android Police only a week in the past.
LG has beforehand promised “wow factors” to attempt to entice shoppers and make its flagging cellular division worthwhile. LG has tried a number of instances with the G7, the V40, the G8, and the V50 to compete with Samsung and Huawei, however it’s not been sufficient to push its market share in the correct route. LG’s latest Velvet and Wing smartphones have tried to strive one thing new, however neither have been properly obtained.
Samsung, Huawei, Xiaomi, Vivo, and Apple all proceed to dominate worldwide smartphone shipments, according to IDC. LG is now turning its focus to its Rollable cellphone, in an effort to distinguish it from the competitors. LG teased the Rollable device once more on the Client Electronics Present final week, with a “distinctive resizable display screen” that extends from a cellphone to grow to be a small pill show.
LG has promised its Rollable system is real and will launch in 2021, however with the corporate reconsidering its cellular plans it could possibly be one of many final LG telephones we’ll see.