After losing around 3.7 billion euros in the last five years, LG plans to exit the smartphone market in 2021.
LG CEO Kwon Bong-Seok has notified employees that the company is considering making big changes to its smartphone business.
The Korea Herald reports that Kwon Bong-Seok sent an email to employees on Wednesday hinting at a turnaround in LG’s phone business.
As the competition in the global mobile device market is increasingly fierce, it is about time LG made a cold judgment and made the best decision. The company is considering all possible measures, including the sale, recall and downsizing of the smartphone business.
LG confirmed that the message is authentic in a statement to The Verge, noting that nothing has been decided yet.
The management of LG Electronics is committed to making whatever decision is necessary to solve the challenges of its mobile business in 2021. To date, nothing has been finalized.
This news comes after Korean media outlet TheElec reported earlier this month that LG was planning to exit the smartphone business. LG branded that report “completely false and unsubstantiated” in a statement just a week ago.
LG has been competing with Samsung and Huawei in recent years, but has failed to increase its market share. The latest LG Velvet and LG Wing smartphones have tried trying something new, but neither of them have been well received.
LG recently announced its next LG Rollable screen phone in an effort to differentiate itself from the competition.
LG has promised that its LG Rollable device is real and that it will launch in 2021, but with the company reconsidering its mobile phone plans, it could be one of the last LG phones we see.