LG Might Exit the Smartphone Business in 2021: Report

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LG Might Exit the Smartphone Business in 2021: Report
After launching the dual-screen LG Wing and teasing the Rollable cellphone, LG is now trying to stop the smartphone market. The firm, in line with a recent Reuters report, plans to close its smartphone manufacturing unit because of heavy losses incurred over the previous few years.

In an inner memo despatched to the workers (first reported by The Korea Herald), LG CEO Brian Kwon said, “In the global market, competition in the mobile business including smartphones has gotten fiercer. LG Electronics believes we have reached the point where we need to make the best decision about our mobile phone business.”

Regardless of any change within the path of the smartphone enterprise, employment will probably be maintained, mentioned Kwon within the memo. The CEO has reportedly assured the workers that none of them will probably be fired. However, reviews counsel that LG plans to maneuver 60% of the workers to the opposite enterprise items and there’s no phrase on what occurs to the remaining 40 %.

“The company is considering all possible measures, including the sale, withdrawal, and downsizing of the smartphone business,” he added. Nothing has been confirmed as of now. As a consequence, some individuals imagine that this is likely to be nothing however a baseless rumor. But let’s face it, LG is at the moment competing with main manufacturers comparable to Samsung from the identical land and different Chinese giants like Xiaomi, Oppo, Vivo, and OnePlus.

The firm has reportedly misplaced about 4.5 billion {dollars} which is roughly Rs. 32,847 crores. LG as soon as ranked No. 3 within the international smartphone market, nevertheless it didn’t make it to the seventh place in 2020.

That being mentioned, LG is transferring on to completely different ventures certainly for the higher. It not too long ago joined palms with automotive provider Magna International to fabricate electrical automobile parts.

The firm additionally showcased a brand new rollable smartphone, very like its rollable good TV, at CES this 12 months, which, if this report is true, won’t see the sunshine of the day.

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