LG decides to close its mobile division in 2021. CEO Kwon Bong-Sok sent out a letter to employees saying that competition in the smartphone market has become too strong, so it’s time to make this difficult decision.
Now LG is considering several options – to completely close the production of smartphones, sell it, or leave only a small part of the business. Representatives of the company told The Verge that they have not yet come to a final decision, it will be announced publicly a little later.
The fact is that LG’s mobile business has been making only losses for the past five years. During this time, the company has not been able to release a single, commercially successful smartphone. New models began to appear much less during this time, and they are sold in fewer countries.
Now LG is not even among the ten largest smartphone manufacturers in the world. In 2020, the company released only 7.2 million smartphones – the main competitors sell that much in one to two weeks. But back in 2014, LG was selling almost 70 million smartphones, on a par with Xiaomi and only slightly behind Huawei.
At the same time, LG may have time to release several smartphones in 2021. At CES 2021, the company announced the LG Rollable with a roll-up display – rumoured to be available in March. The company also has many other businesses – displays and other components, televisions, household appliances, and more.