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The hour of judgment has come for LG’s mobile business – the company is ready to sell it
Rumors have recently begun to circulate that LG Electronics will announce the sale or liquidation of its smartphone development and manufacturing division by the end of January. Until today, the company has denied this information, but now fire appeared behind the smoke. The company officially announced that its unprofitable mobile business is open to “all opportunities”, which includes the possibility of selling the division.
LG Wing Smartphone. Image source: Yonhap
“In the global marketplace, competition is intensifying in the mobile business, which includes smartphones,” LG said. “At the moment, we are open to every opportunity and are carefully reviewing our plans for the future.”. Additionally, in an email to employees, LG Electronics CEO Kwon Bong-Seok said that employees of the company’s mobile business will keep their jobs regardless of the fate of the division.
LG’s mobile business is in negative territory since Q2 2021. The company had a cumulative operating loss of about 5 trillion won ($ 4.5 billion) last year. LG has been trying to improve its mobile business in recent years by adjusting its product portfolio and expanding original development contract manufacturing (ODM) deals.
Also to boost sales of premium smartphones last year, the company launched the Explorer project, which included a new category of mobile devices with an unusual form factor and an improved mobile interface, as well as the Wing smartphone with two screens and a rotating form factor. Alas, they were coldly greeted by buyers. LG also plans to launch a smartphone with a retractable OLED display later this year, but now its fate is in question.