LG Electronics Could Shut Down Its Smartphone Business
Earlier this year, at the CES 2021 conference, LG proudly showed off the first concept phone with a rollable screen. At that time, it was called LG Rollable, and it looked promising. At that time, the company talked about how the phone would go on sale later this year. However, it seems like things are not going according to plan. We have just got word that LG is in the process of shutting down the smartphone business and exiting the market because of continuous losses that the company has been facing for some time now.
LG Could Finally Wave the White Flag and Exit the Smartphone Market
LG was selling the smartphone business unit to VinGroup, but the deal never really went through. The latest report suggests that the South Korean tech giant might finally close the smartphone business instead of selling it as the previous plan was. The report talks about how the negotiations between LG, Volkswagen, and Vingroup JSC in Vietnam have failed. In addition to that, the company has suspended the plans to launch all the upcoming smartphones in the first half of 2021. In simpler words, the manufacturer's failure to find a suitable buyer for the smartphone division will result in the company shutting down.
LG has talked about how they have struggled to make their smartphones a viable option in the market considering how tough the competition has become, especially from Samsung. However, at that time, the company was still looking at options to ensure that it can stay in the market.
Additionally, Vingroup JSC had a strong interest in acquiring LG's mobile division, but it seems like that is also not working together. That, combined with the fact that LG's smartphone business has suffered losses for 23 consecutive quarters since the second quarter of 2015, and as of the last quarter of 2020, the LG mobile division has accumulated losses that have reached 5 trillion won approximates to $4.43 billion.
LG was once the third-largest smartphone manufacturer, second only to Samsung and Nokia. However, it is sad to see LG going out of the market, considering how the company has made some of the best smartphones. The G4 remains one of my favorite smartphones of all time, and I was looking forward to what LG was planning on doing with the Rollable, but it seems like that is not going to happen.