After launching this dual-screen LG Wing also teasing the roll-up phone, LG is now looking to exit the smartphone market. The company, according to a recent Reuters report, plans to shut down its smartphone manufacturing unit due to heavy losses suffered in recent years.
In an internal memo sent to employees (first reported by The Korea Herald), LG CEO Brian Kwon stated: “In the global market, competition in the mobile business, including smartphones, has become more fierce. LG Electronics believes that we have reached the point where we need to make the best decision about our mobile phone business. “
Regardless of any change in the direction of the smartphone business, employment will remain, Kwon said in the memo. The CEO has reportedly assured the employees that none of them will be fired. However, reports suggest that LG plans to transfer 60% of the employees to other business units and it is not known what will happen to the remaining 40%.
Nothing has been confirmed so far. As a result, some people believe that this could be nothing more than a baseless rumor. But let’s face it, LG is currently competing with big brands like Samsung from the same land and other Chinese giants like Xiaomi, Oppo, Vivo, and OnePlus.
The company has reportedly lost around $ 4.5 billion, which is roughly equivalent to Rs. 32,847 million rupees. LG was once ranked No. 3 in the global smartphone market, however, it did not make it to No. 7 in 2020.
That said, LG is moving towards different companies surely for the better. It recently teamed up with automotive supplier Magna International to manufacture electric car components.
The company also showed off a new roll-up smartphone, much like its roll-up smart TV, at this year’s CES, which, if this report is true, might not see the light of day