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LG may already be in the process of closing the smartphone business

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Earlier this year, at the CES 2021 conference, LG proudly displayed the first concept phone with a scrollable screen. At that time, it was called LG Rollable and it looked promising.

At the time, the company was talking about how the phone would go on sale later this year. However, it seems that things are not going according to plan.

We just received the news that LG is in the process of closing the smartphone business and exiting the market because of the continuing losses that the company has been facing for some time.

LG was selling the smartphone business unit to VinGroup, but the deal never really went through.

LG may already be in the process of closing the

The latest news from Bloomberg indicates that the South Korean tech giant may finally close the smartphone business instead of selling them as the previous plan was.

The report talks about how negotiations between LG, Volkswagen and Vingroup JSC in Vietnam failed. In addition, the company has suspended plans to launch all of the next smartphones in the first half of 2021.

In simpler words, the manufacturer’s failure to find a suitable buyer for the smartphone division will result in the closure of the company.

LG

LG talked about how they have struggled to make their smartphones a viable option in the market, considering how fierce the competition has become, especially from Samsung. However, at that time, the company was still looking for options to guarantee its permanence in the market.

In addition, Vingroup JSC had a keen interest in acquiring the mobile division of LG, but it seems that this is also not working together.

This, combined with the fact that LG’s smartphone business has suffered losses for 23 consecutive quarters since the second quarter of 2015, and as of the last quarter of 2020, LG’s mobile division has accumulated losses that reached 5 trillion won approximately US $ 4.43 billion.

LG was once the third largest smartphone maker, second only to Samsung and Nokia. However, it is sad to see LG leaving the market, considering how the company made some of the best smartphones.

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