Briefly: Will LG telephones quickly develop into a factor of the previous? It’s beginning to look more and more probably. In keeping with a latest report, the LG Electronics division has did not safe a purchaser for its cellular enterprise, leaving it liable to shuttering utterly.
Whereas LG continues to be a pacesetter in televisions, displays, and residential home equipment, the corporate has spent years watching its share of the smartphone market diminish. The 6.5 million units it shipped in Q3 2020 marked a 7.2 million decline in comparison with the identical quarter a yr earlier, and the smartphone group has misplaced about 5 trillion gained ($4.5 billion) throughout the final 5 years.
In January, LG’s CEO stated the corporate was contemplating all doable measures relating to the smartphone enterprise, together with its sale, withdrawal, and downsizing.
In keeping with a DongA Ilbo report (by way of Bloomberg), Germany’s Volkswagen AG and Vietnam’s Vingroup JSC had been trying into buying LG’s smartphone arm, however negotiations have fallen via. As they had been the one two events, it leaves LG’s withdrawal from the cellphone trade a extra probably prospect.
LG has already outsourced the manufacture of its low- to mid-range telephones to Chinese language companies, and the corporate is claimed to have stopped manufacturing of its rollable handset, regardless of its latest itemizing on Bluetooth SIG. Moreover, the deliberate first-half rollout of all its new smartphones has reportedly been shelved.
We’ve already heard that the successor to the LG Rainbow has been delayed indefinitely. The cessation of its smartphone operations would probably spell the tip for its present Velvet, Wing, and the V60 ThinQ flagships, too.
LG could inform workers its determination relating to the smartphone companies subsequent month. It’s probably that affected staff shall be relocated to different divisions throughout the agency.