LG is reportedly considering exiting the smartphone market, having lost an enormous 5 trillion won ($4.5 billion) over the past five years in the ultra-competitive segment. The news comes from The Korea Herald, which posted messages from CEO Kwon Bong-seok and other company officials hinting at a sale, downsizing, or complete withdrawal from the smartphone business.
“Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” Bong-seok said.
“Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice,” an LG official explained. “The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.”
LG currently sells a wide variety of smartphones that range from the budget K30 Series to the flagship V Series. The company also has a couple of interesting novelty models, such as the LG WING, which comprises two screens, one of which can swivel.
“This is not the first time LG has been subject to such rumors, since it decided in 2019 to expand outsourcing of its low-end and midrange phone production,” The Korea Herald noted.