Amidst surmounting pressure from top-notch competitors, tech giant LG is considering leaving the smartphone scene this year, according to a report by The Korea Herald.
After losing nearly $4.5 billion for over five years, LG is considering quitting the smartphone market for good in 2021. Despite introducing innovative as well as pocket-friendly phones, LG seems to have lost the fight in competing with the likes of Samsung, Huawei, and Apple.
According to a report by The Korean Herald, LG’s CEO Kwon Bong-Seok has told the employees that the company is planning to make major changes ‘in the operation of the smartphone segment.’
“Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” he said. “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 explained. “The company is considering all possible measures, including sale, withdrawal, and downsizing of the smartphone business.”
In the memo, he also assured them that regardless of the changes that are made they would not lose their jobs. “Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” he added.
Earlier this month, a report by The Elec also claimed that LG was planning to sell off its mobile by the end of this month. At the time, LG had strongly denied the report. But now, it looks like LG is mulling the decision to leave the smartphone market seriously. This comes despite the company’s efforts to renew its smartphone business with a new line of smartphones starting with the LG Velvet last year. LG has tried multiple times with the G7, the V40, the G8, and the V50 to compete with Samsung and Huawei, but it’s not been enough to push its market share in the right direction. LG’s latest Velvet and Wing smartphones have attempted to try something new, but neither was well received.
Meanwhile, LG has promised its Rollable device to be launched in 2021, but with the company reconsidering its mobile plans it could be one of the last LG phones that might come out.