LG Likely To Exit Smartphone Market – Report

South Korean giant LG Electronics is reportedly soon to exit the smartphone sector altogether, after years of struggling to make an impact.

The Korea Times, citing three sources, reported that a decision has already been made about its loss-making smartphone division and it has entered into a transition process to relocate its mobile communications staff to other business units.

The media outlet reported that LG’s smartphone unit has suffered operating losses since 2015, and the firm had recently attempted to sell the mobile communications unit.

Smartphone exit

Indeed, the firm has reportedly been in negotiations with various interested buyers, including Vietnam’s Vingroup, but failed to reach an agreement with any of them.

It was reported that LG had considered selling parts of its operations or pulling out of the smartphone business altogether.

But it decided recently to pull out of the smartphone business altogether, the Korea Times reported.

“LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business,” the outlet quoted industry sources as saying.

The reported added that LG is expected to make an official announcement at its board meeting on Monday 5 April.

Open possibility

When asked to address such prospects, an LG Electronics official reportedly said, “There’s nothing to comment on.”

“All we can say is that every possibility is open,” the official reportedly said. “Although we cannot confirm that right now, we will announce the specific direction of our mobile communications business.”

The possibility of LG pulling out of the smartphone business surfaced in January when LG Electronics CEO Kwon Bong-seok reportedly acknowledged that the company was reviewing the direction of its mobile communications business with all possibilities open.

Although LG’s smartphone business has struggled, other divisions have enjoyed great success such as home appliances and TVs, thanks in part to lockdowns caused by the global Coronavirus pandemic.

Tom Jowitt

Tom Jowitt is a leading British tech freelancer and long standing contributor to Silicon UK. He is also a bit of a Lord of the Rings nut...

Recent Posts

Norway Plans Temporary Ban On New Crypto Mining Data Centres

Norway reportedly seeks to impose temporary ban on new data centres mining crypto, to conserve…

1 day ago

BBC Warns Perplexity Of Legal Action Over Content Use

British broadcaster BBC alleges US-based Perplexity is reproducing BBC content “verbatim” without its permission

1 day ago

Waymo Applies For New York Testing Permit

Congested streets of New York targetted by Waymo for testing, even though full robotaxis are…

1 day ago

Apple ‘Premium’ Priced Folding iPhones Expected In 2026, 2027

Foxconn is expected to begin a foldable iPhone project later this year, says analyst, with…

2 days ago

Microsoft To Axe Thousands Of Sales Staff – Report

More job losses for Microsoft, after report tech giant is planning to cut thousands of…

2 days ago

SpaceX Starship Explodes On Launch Pad

Another setback? Elon Musk's SpaceX rocket explodes into giant fireball during testing at Starbase facility…

2 days ago