LG smartphones sold for halved prices before announcement on fate of mobile unit

The final batch of smartphones by LG Electronics — LG Velvet and LG Wing launched final yr — are being bought with large reductions and subsidies by way of cell carriers earlier than the corporate’s remaining choice on its deliberate sale of the smartphone enterprise.

In accordance with the telecom trade Monday, the precise price of shopping for an LG Wing, a dual-display smartphone launched final September, has been diminished to round 400,000 gained ($357) from 1.09 million gained, amid sluggish gross sales. 

Precise costs might go even decrease as some telecom companies have raised subsidies for LG telephones as a result of sluggish gross sales. 

LG Velvet, nicknamed the “water drop telephone” launched in Might of 2020 with a price ticket of 899,800 gained, is obtainable even without spending a dime by way of LG Uplus, if patrons select probably the most premium cell plan and obtain the utmost subsidy that quantities to 783,000 gained and an extra subsidy of round 110,000 gained.

LG Uplus, the telecom affiliate of LG Group, gives bigger subsidies than the opposite telecom corporations, which appears to be a transfer to spice up the LG telephones’ gross sales.

“They could possibly be the final telephones from LG, and costs are more likely to fall additional as the corporate is getting ready to withdraw from the market,” an official at a Korean telecommunications agency stated.

LG had sought to revive its smartphone enterprise with an amassed deficit of 5 trillion gained, with the 2 fashions, however losses have continued to mount.

The corporate reported 841.2 billion gained in working lack of the smartphone unit final yr.

Final month, LG introduced the corporate is contemplating all attainable measures to determine on the destiny of the cell enterprise, together with an choice handy it over to an out of doors firm.

Vietnamese conglomerate Vin Group is talked about as a powerful candidate for taking on LG’s smartphone enterprise. Microsoft and Google, which have their very own smartphone companies are additionally potential patrons.

Essentially the most possible situation is to promote the manufacturing facility for smartphones, whereas retaining the core cell applied sciences that could possibly be utilized for future companies associated to Web of Issues and autonomous driving.

Throughout its earnings name final month, the corporate underscored, “The cell applied sciences are an essential asset to good residence home equipment and automotive elements.”

By Track Su-hyun (tune@heraldcorp.com)