LG is considering terminating the smartphone business altogether amid declining shipments and $ 4.5 billion in losses over the past five years (via The Korea Herald).
/article-new/2021/01/lg-wing.jpeg?resize=560%2C315&ssl=1)
LG CEO Kwon Bong-Seok warned staff earlier today that the company was re-evaluating its presence in the smartphone industry:
As competition in the global mobile device market intensifies, it’s time for LG to make a cold judgment and make the best choice. The company is considering all possible measures, including the sale, withdrawal and downsizing of the smartphone business.
He added that regardless of any change, the company will retain its current employees of the smartphone division and assign them elsewhere.
LG has seen a rapid decline in smartphone shipments over the past few years and it is believed that the company now owns only a market share of just two percent. LG showed 23 consecutive quarters of major financial deficits in its smartphone segment, reaching a total loss of $ 4.5 billion.
When he appointed CEO in January 2020, Kwon promised to turn around the company’s smartphone business. The CEO’s latest comments therefore appear to be an acknowledgment of the failure to make the segment profitable.
At the same time LG ends according to production LCD screens for the iPhone The election. LG Display previously tried to supply LCDs for the second generation iPhone SE, but did not meet Apple’s requirements, which led to Japan Display and Sharp being chosen as suppliers. LG’s factory that previously manufactured the components will again be used to manufacture car display panels.
Earlier this month, LG unveiled one of the world’s first rollable smartphones at CES, as the company tried to explore unusual designs to attract customers. The future of this device and other LG smartphones like the LG Velvet and LG Wing is now very uncertain.