After years of repeated rumors and rumors, the future of LG’s smartphone division came under speculation again when LG CEO Kwon Bong-Seok apparently sent a message to staff on Wednesday, indicating that there may be major changes soon. .
After years of losses, although the possibility that LG wants to leave the phone industry or sell its smartphone division does not have to be a big surprise, this recent news feels less than a week later all of a sudden. LG debuts with new rollable concept at CES 2021.
According to information from the Korea Herald, following Kwon’s message about possible ‘major changes’, another LG official also explained that’ As competition in the global mobile device market gets worse, it’s time for LG to make a cold judgment and to make the best choice. The company is considering all possible measures, including the sale, withdrawal and downsizing of the smartphone business. ”
Kwon happily said, “Regardless of any change in the direction of the smartphone industry, the service will be maintained, so you do not have to worry”, with the Korea Herald reporting rumors that about 60% of the staff would be relocated or redistribute to other divisions with LG.
While LG was able to reduce the losses due to its telephone division by outsourcing production of lower-cost devices to third-party manufacturers, LG’s mobile division continued to operating loss of $ 124.9 million in Q3 2020.
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As I see it, LG Mobile battle comes from a number of different ways. The first is that LG has been trying for years to keep up with its big Korean rival Samsung without having the same level of technology or sales needed to support and support high-end phone. Furthermore, LG’s phones have long been loaded with soft software and support, with efforts like its Software Upgrade Center with very little effect or benefit to end users. This often means that new versions of Android take months or sometimes years to emit to devices.
And even though I really like more experimental phones like the LG wing, it often felt like LG was spending more time tossing ideas into the wall than expanding a wider range of budget and mid-range devices to better compete with devices like Samsung’s more affordable Galaxy A-series phones, which some of the worldwide best-selling devices in recent years.
In many ways, if LG wants to save smartphone business, it might make sense for LG to take a page from Motorola and HMD / Nokia’s playbook by focusing on hardware and device design while switching to a more Android version. instead of LGs custom skin. This could potentially keep LG working on developing devices like its rollable phone concept and releasing more mid-range devices, while Google could handle more of the load when it comes to software and OS updates.
Either way, while it’s still a bit too soon to pour one out for LG’s mobile division, it’s clear that there’s some big changes coming.