Contemplate a company LG is leaving the smartphone market in 2021, after losing about $ 4.5 billion over the past five years.
LG’s smartphone business has been struggling to compete with competitors, and LG CEO (Kwon Bong-seok) has now informed employees that the company is considering making major changes to its smartphone business.
And thementioned The Korea Herald reported that Seok sent an internal memo to employees on Wednesday, hinting at a change in the direction of LG’s phone business.
“Given that competition in the global mobile device market is getting fierce, it is time for LG to make a cold judgment and the best choice,” a LG official said in a statement to the Korea Herald.
He added: The company is studying all possible measures, including selling, withdrawing and downsizing the smartphone business.
LG confirmed the validity of the internal memo in a statement, noting that nothing has been decided yet.
A spokesperson for LG says: LG management is committed to making any decision necessary to solve mobile business challenges in 2021, and nothing has been finalized. Even today.
This new internal note comes after a report now deleted from the Korean outlet TheElec earlier this month, which claimed that LG was planning to exit the smartphone business.
LG called this report completely wrong and unfounded, in a statement just a week ago.
Previously, LG promised dazzling shapes to try to lure consumers and make its struggling cell phone division profitable.
The company has experimented several times with the G7, V40, G8, and V50 to compete with Samsung and Huawei, but that wasn’t enough to push its market share in the right direction.
The latest LG Velvet and Wing phones tried something new, but neither was received well.
Samsung, Xiaomi, Huawei, Vivo and Apple all continue to dominate smartphone shipments around the world, according to market research firm IDC.
LG is now turning its focus to its rewindable phone, in an effort to set it apart from the competition.
The company thrilled the rotatable device again at the Consumer Electronics Show last week, with a unique resizable screen that extends from a phone screen to a small tablet screen.
LG has promised that its rewind device is real and will be launched in 2021, but as its mobile phone plans reconsider, it could be one of the last LG phones we’ll see.