LG exploring options that include abandoning the smartphone business

Despite the recent debut of his new rollable phone technology and capturing its fair share of buzz in 2021 Consumer Electronics Show, LG may be considering quitting the smartphone game, according to a report on Wednesday by The Korea Herald. The tech giant is facing stiff competition from other manufacturers, as it appears to be balancing a $ 4.5 billion loss in the past five years.

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

“Regardless of any change in the direction of the smartphone business operation, employment will be maintained, so there is no need to worry,” said Bong-seok.

LG was among the best Android players in the early days of the modern smartphone era, based on its success during the chocolate bar and flip phone period. But as larger conglomerates like Samsung and Huawei gained more participation and startups like OnePlus started to attract hardcore enthusiasts, companies like LG were increasingly under pressure, especially in the first-tier phone market, where the iPhone and the family Galaxy S have long dominated.

After years of experimenting with tricks like a option for modular parts or leather-clad, LG’s flagship phone line for the past three years has been largely conservative, offering sophisticated specifications and an undefined look at a moderate price. This has changed in recent months with the LG Wing dual swivel screen, which was released in the fall, and Rollable was revealed at CES. The buzz of these phones, however, has not changed the reality that the business has faced significant financial headwinds in recent years.

“As competition in the global mobile device market is getting tougher, 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 selling, withdrawing and reducing the size of the smartphone business.”

A spokesman for LG confirmed the memo to CNET, noting that the company was exploring a variety of options. “Currently, nothing has been finalized and commenting further would be just speculation,” said LG spokesman Ken Hong.