- LG has apparently decided to shutter its smartphone business unit.
- The announcement about this decision is likely to come out on Monday.
- LG has been struggling to sell its phones against the likes of Samsung, Apple.
LG has seemingly decided to shutter its smartphone business after several attempts to survive the competition. A new report by The Korea Times has said that LG will be moving its employees of the smartphone business unit to other departments. And while the transition may be happening quietly and internally, LG is likely to make a formal announcement on Monday, April 5. The South Korean company has been striving hard to retain its phone business, but it has been more or less unsuccessful in making it big for about six years consecutively.
The last time LG made a profit off its smartphone business unit was six years ago. Since then LG's efforts towards its phone portfolio have been nothing but a waste. In fact, back in January this year, LG confirmed that it is exploring options for its phone business, including sale, withdrawal, and downsizing it. There were reports last year that LG would sell its low-end phone business to its partner manufacturing companies while top-end phone lines such as Velvet and Wing will continue. But even these two phones could not bring about any good fortune.
"LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business," the report said, citing some industry sources.
After the report came out, an LG spokesperson gave a statement to Android Central, saying, "There's nothing to comment on." The spokesperson reiterated that LG is still weighing in all possible options it has at hand. But there is no official confirmation right now. "Although we cannot confirm that right now, we will announce the specific direction of our mobile communications business." However, the report has suggested LG will announce its decision at the upcoming board meeting on April 5.
Earlier this year, LG was exploring the sale of its smartphone business unit. It was apparently talking to Vietnam's Vingroup and Germany's Volkswagen AG, but these discussions could not reach an end, forcing LG to reevaluate its options. It seems LG's smartphone business is so bad that no big company is interested in buying it. And as a result, LG now has to wind down its smartphone business for good.
And this decision comes at an abrupt time. Just this year, at the CES, LG showed off its ambitious rollable phone called The Rollable. And while people were shrugging it off as a prototype that may not become a reality until at least one year, LG went ahead to announce that The Rollable will arrive later this year. However, later, the local media reported LG had halted the production of its rollable phone. Separately, the Velvet smartphone line that LG launched last year was also likely to get upgrades this year. And then, there is the Wing smartphone that wowed everyone with its swivelling double displays. LG is yet to announce what the future holds for all these phones.