LG introduced a rollable smartphone at CES 2021, clearly indicating that the company has not run out of great ideas for its smartphone business. At the turn of the year LG also refuted the rumors about exiting the smartphone business saying these assumptions are “completely false and without merit.”
However in a dramatic turn of events, the company CEO has sent an internal memo, hinting there would be a major change in the mobile division’s operation.
LG Twin Towers HQ in Seoul, South Korea
Kwon Bong-seok, Chief Executive at the Korean company, said “regardless of any change […], the employment will be maintained, so there’s no need to worry”. The official explained the market is getting more and more competitive, and it is “about time LG to make a cold judgment.” He also added:
The company is considering all possible measures, including sale, withdrawal, and downsizing of the smartphone business.
The Mobile Communications team accumulated a loss of KRW5 trillion (about $4.5 billion) in the last five years, while the other divisions were posting solid financial results and smashing record after record.
According to Counterpoint, LG shipped only 6.5 million phones in Q3 2020, down from 7.2 million, taking an unimpressive 2% global market share. But while sales aren’t great, the company has brought plenty of innovative products so we really hope for the sake of competition that it won’t come to it exiting the smartphone game.