•  
  •  
  •  
  •  
  •  
  •  

LG has shut down its smartphone manufacturing department as of April 2021. According to the original article by Tom Warren from The Verge , the company has made the decision after losing around $4.5 billion over the past five years. It has been a challenge for LG smartphones to stand out among competitors. LG CEO Kwon Bong-seok has revealed to employees that the company plans to implement changes to its smartphone business.

The Korea Herald reports that Kwon Bong-seok sent out an internal memo to staff on Wednesday, hinting at a change in direction for LG’s phone business. “Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice,” says an LG official in a statement to The Korea Herald. “The company is considering all possible measures, including sale, withdrawal, and downsizing of the smartphone business.”

LG confirmed to The Verge that the internal memo was genuine. The company also remarked that nothing had yet been decided. “LG Electronics’ management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021,” said an LG spokesperson. “As of today, nothing has been finalized.”

The fresh internal memo includes an earlier, deleted report from Korean outlet, TheElec, that claimed LG was planning to exit the smartphone making market. LG branded that report “completely false and without merit,” in a statement to Android Police just a week ago.

Previously, LG has made several attempts to outsmart their competitors, but nothing has been wildly successful. LG has tried multiple times with the G7, V40, G8, and V50 to compete on the same level as Samsung and Huawei, but it’s never been quite enough to push its market share in the right direction. LG’s latest Velvet and Wing smartphones were attempts to try something new, but neither were well received by the market.

LG is now turning its focus to its Rollable phone, in an effort to differentiate it from the competition. LG teased the Rollable device again at the Consumer Electronics Show last week, with a “unique resizable screen” that extends from a phone to become a small tablet display.

LG has promised its Rollable device is real and will launch in 2021, but with the news that the company has rearranged its plans, it seems like this phone will be the last shot.

0
0