LG was once considered a fixture in the smartphone business and competed with Samsung and Co. But years ago the focus was withdrawn, now LG is considering giving up this business completely. Reason: LG can hardly bear the losses.
With the G series, LG once had a series that was on par with market giants such as Galaxy and HTC One. But the Korean manufacturer lost the connection at some point (like HTC, by the way), one of the reasons for this was the rapid rise of competition from China.
The losses are hardly bearable
In the meantime, LG hardly ever makes “normal” smartphones, but the company is still open for experiments like the LG Wing. But you don’t make any money with it, on the contrary. Over the past five years, LG has lost about $ 4.5 billion in this line of business.
According to a report by The Korea Herald, LG CEO Kwon Bong-Seok has now informed employees of the company via an internal memo that the company is considering making far-reaching changes to the smartphone business.
In a statement to The Korea Herald, the company later said, “As competition in the global mobile device market continues to intensify, it is time for LG to make a cold judgment and make the best choice. The company is considering all possible actions, including selling, withdrawing and downsizing the smartphone business. “
Meanwhile, LG also has The Verge confirms that the memo is real. However, the company emphasized that nothing has been finalized here. The management of LG Electronics is determined to make “every decision that is necessary to solve the challenges of the mobile communications business in 2021”. At the beginning of the month, LG vehemently denied that it was considering withdrawing from the smartphone business, but that sounds pretty different now.
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