IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

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

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Skills shortages expected to hit over 90% of Australian and New Zealand businesses
Careers & training

Skills shortages expected to hit over 90% of Australian and New Zealand businesses

28 Jun 2022
Why India wants to become a chipmaking powerhouse
components

Why India wants to become a chipmaking powerhouse

28 Jun 2022
Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones
Mobile Phones

Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones

23 Jun 2022
Toshiba eyes $22bn buyout offer in bid to go private
Business strategy

Toshiba eyes $22bn buyout offer in bid to go private

23 Jun 2022

Most Popular

Actively exploited server backdoor remains undetected in most organisations' networks
cyber attacks

Actively exploited server backdoor remains undetected in most organisations' networks

1 Jul 2022
Macmillan Publishers hit by apparent cyber attack as systems are forced offline
Security

Macmillan Publishers hit by apparent cyber attack as systems are forced offline

30 Jun 2022
Former Uber security chief to face fraud charges over hack coverup
data breaches

Former Uber security chief to face fraud charges over hack coverup

29 Jun 2022