LG is considering exiting the smartphone market this year. After more than five years without a quarterly profit for their smartphone division and a total loss of 3.7 billion euros over that period, the South Korean company is forced to make major changes.
News of LG’s plans first came out through a leaked internal note from CEO Kwon Bong-seok in The Korea Herald. It talked about major changes within the company’s smartphone activities.
No decision yet
“As competition in the global mobile device market intensifies, it is time for LG to make a decision and make the best choice. The company is considering all possible measures, including selling, withdrawing and downsizing its smartphone business, ”an LG employee told The Korea Herald.
LG confirms to the website The Verge that the bill is genuine. The company adds that no final decision has yet been taken. “LG Electronics management is committed to making all the decisions necessary to solve the mobile business challenges in 2021. To date nothing has been completed ”, it sounds.
Innovation without success
LG has been struggling to conquer its share of the market for some time now between market leaders such as Apple, Samsung, Xiaomi and Huawei. After trying to compete directly for a long time, the company has recently focused on innovation. It came a few months back with the LG Wing with a rotatable screen and recently teased a rollable tablet LG Rollable.
For the time being, however, this does not seem to yield the desired result. LG currently has barely a market share of 2 percent and sees its sales figures decline more and more.