LG explores options that include demolishing the smartphone business

Despite the premiere of his new mobile phone technology and to achieve its fair share of the buzz in 2021 Consumer Electronics Show, LG may consider getting completely out of the smartphone game, according to a report by The Korea Herald on Wednesday. The technology giant is facing stiff competition from other manufacturers as it looks set to offset a $ 4.5 billion loss over the past five years.

LG CEO Kwon Bong-seok reportedly sent a memorandum to employees on Wednesday informing them that he was considering a range of options for the company’s smartphone division, which could include a sale.

“Regardless of any change in the direction of the smartphone industry, the service will be maintained, so there is no cause for concern,” Bong-seok reportedly said.

LG was among the best Android players in the early days of the modern smartphone era and builds on its success during the candy and browsing phone era. But as larger conglomerates like Samsung and Huawei participated more and started attracting the likes of OnePlus hardcore enthusiasts, companies like LG were increasingly squeezed out, especially in the market for top phones where the iPhone and Galaxy S family have long dominated.

After years of experimenting with gimmicks like a option for modular parts or leather support, the range of LG flagship phones over the past three years has been largely conservative and offers excellent specs and an indescribable look for a moderate price. This has changed in recent months with the dual-screen LG Wing, launched in the fall, and the Rollable launched at CES. However, the loudness of these phones has not changed the reality that the company has been facing major financial winds over the past few years.

“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 told The Korea Herald. “The company is considering all possible measures, including the sale, withdrawal and downsizing of the smartphone business.”

An LG spokesperson confirmed the memo to CNET and noted that the company is exploring a variety of options. “At the moment, nothing has been finalized, and further comments can only be speculation,” LG spokesman Ken Hong said.