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 staff that the corporate is contemplating making huge modifications to its smartphone enterprise.
The Korea Herald stories that Kwon Bong-seok despatched out an inside memo to workers on Wednesday, hinting at a change in course for LG’s cellphone enterprise. “For the reason that competitors within the world marketplace for cell units is getting fiercer, it’s about time for LG to make a chilly judgment and your best option,” says an LG official in a press release to The Korea Herald. “The corporate is contemplating all potential measures, together with sale, withdrawal and downsizing of the smartphone enterprise.”
LG confirmed the inner 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 choice is critical to resolve its cell enterprise challenges in 2021,” says an LG spokesperson. “As of immediately, nothing has been finalized.”
This new inside 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 press release to Android Police only a week in the past.
LG has beforehand promised “wow elements” to attempt to appeal to customers and make its flagging cell division worthwhile. LG has tried a number of occasions with the G7, the V40, the G8, and the V50 to compete with Samsung and Huawei, nevertheless it’s not been sufficient to push its market share in the fitting course. LG’s newest Velvet and Wing smartphones have tried to attempt one thing new, however neither had been nicely acquired.
Samsung, Huawei, Xiaomi, Vivo, and Apple all proceed to dominate worldwide smartphone shipments, in line with IDC. LG is now turning its focus to its Rollable cellphone, in an effort to distinguish it from the competitors. LG teased the Rollable machine once more on the Client Electronics Present final week, with a “distinctive resizable display” that extends from a cellphone to change into a small pill show.
LG has promised its Rollable machine is actual and can launch in 2021, however with the corporate reconsidering its cell plans it could possibly be one of many final LG telephones we’ll see.