LG is considering leaving the smartphone market in 2021. After losing about $ 4.5 billion over the past five years, LG’s smartphone business is struggling to compete with competitors. LG CEO Kwon Bong-seok has informed employees that the company is considering making major changes to its smartphone business.
The Korea Herald reported that Kwon Bong-seok sent an internal memorandum to staff on Wednesday, indicating that there is a change of direction for LG’s phone business. “As competition in the global mobile device market intensifies, it’s time for LG to make a cold judgment and make the best choice,” an LG official said in a statement. The Korea Herald. “The company is considering all possible measures, including the sale, withdrawal and downsizing of the smartphone business.”
LG confirmed that the internal memo was genuine in a statement to The edge, and note that nothing has been decided yet. “The management of LG Electronics is committed to making the decision needed to address its mobile business challenges in 2021,” said an LG spokesperson. “As of today, nothing has been finalized.”
This new internal memo follows a report now removed in Korea TheElec earlier this month who claimed LG was planning to leave the smartphone business. LG described the report as ‘completely untrue and without merit’, in a statement to Android Police just a week ago.
LG has previously promised ‘wow factors’ to try to attract consumers and make its flagship mobile division profitable. LG has tried several times with the G7, the V40, the G8 and the V50 to compete with Samsung and Huawei, but it was not enough to push its market share in the right direction. LG’s latest Velvet and Wing smartphones have tried something new, but none of them have been well received.
According to IDC, Samsung, Huawei, Xiaomi, Vivo and Apple still hold smartphone shipments around the world. LG is now focusing on its Rollable phone, in an effort to differentiate it from the competition. LG teased the Rollable device again at the Consumer Electronics Show last week, with a “unique size of the size” ranging from a phone to a small tablet screen.
LG has promised that the Rollable device will be genuine and will be launched in 2021, but if the company reconsiders its mobile plans, it could be one of the last LG phones we will see.