LG might shut down its struggling smartphone business

The mobile division may close for good after accumulating operating losses of nearly £3.2 billion in 2020

LG Electronics is considering selling or potentially even shutting down its struggling mobile business, according to industry insiders.

The company was in negotiations with Vingroup of Vietnam and Volkswagen of Germany but hasn’t made any notable progress, The Korea Herald reports

"LG reportedly had talks with others over the sale of the unit but apparently there was not much progress in their negotiations," an official in the mobile industry said on condition of anonymity to the publication. "It seems that selling its entire mobile business appears to be difficult at this moment, as is the partial sale of the unit."

Since the second quarter of 2015, LG’s mobile business has been in the red and it accumulated operating losses of nearly 5 trillion won (£3.2 billion) last year.

As its restructuring plan has been apparently running in place for two months, industry trackers now believe that the company may be leaning towards the option of closing down the mobile unit. 

Related Resource

Go further with mobile marketing

Easy steps to get your mobile strategy up-to-speed

Easy steps to get your mobile strategy up-to-speed - whitepaper from OracleDownload now

IT Pro has contacted LG for comment.

LG impressed CES attendees in January with its new handset with a “rollable” display which might also be in jeopardy, with the company reportedly ceasing the development of the smartphone. 

The company should reveal more of its plans for its smartphone business next month when it has a board meeting, according to reports. 

In January, there was confusion as LG both verified and denied rumours suggesting it was looking at potentially shutting down its smartphone business.

"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 said, according to The Korea Herald. "The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business."

This was then verified and denied by different publications, where LG gave out different statements confirming and denying the rumours.

Even though LG has released “unique” handsets like the LG Wing, it has not been able to compete with newer companies like Huawei, OnePlus and Xiaomi.

Featured Resources

2021 Thales access management index: Global edition

The challenges of trusted access in a cloud-first world

Free download

Transforming higher education for the digital era

The future is yours

Free download

Building a cloud-native, hybrid-multi cloud infrastructure

Get ready for hybrid-multi cloud databases, AI, and machine learning workloads

Free download

The next biggest shopping destination is the cloud

Know why retail businesses must move to the cloud

Free Download

Recommended

Microsoft to shutdown LinkedIn in China
Careers & training

Microsoft to shutdown LinkedIn in China

15 Oct 2021
Acer confirms breach after cyber attack on Indian servers
hacking

Acer confirms breach after cyber attack on Indian servers

14 Oct 2021
7-Eleven biometric data collection found in breach of Australian privacy laws
privacy

7-Eleven biometric data collection found in breach of Australian privacy laws

14 Oct 2021
Australia plots harsher penalties for hackers involved in ransomware attacks
Policy & legislation

Australia plots harsher penalties for hackers involved in ransomware attacks

13 Oct 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Supply chain breaches impacted 97% of firms in the past year
supply chain management (SCM)

Supply chain breaches impacted 97% of firms in the past year

12 Oct 2021