LG Electronics, a South Korean electronics giant, may soon close its mobile communication business after preliminary plans for sale fell through. LG’s talks with two potential buyers – Volkswagen AG of Germany and Vingroup JSC of Vietnam – about selling the smartphone business fell through.
According to South Korea’s DongA Ilbo, LG is now more likely to pull the plug on its phone company rather than looking for new candidates. According to the report, LG has also postponed its planned rollout of all new smartphones for the first half of this year.
In January, LG Electronics CEO Kwon Bong-seok said that all options for the loss-making operation were offered. LG could inform employees of its decision on the company’s fate as early as April.
Bong-seok explained the company’s intention to exit the smartphone industry in a letter to employees, claiming that the company had lost $4.5 billion (Rs 32,856 crore) over the previous five years.
“Because competition in the global mobile device market is growing, it is past time for LG to make a sound decision and make the best choice. The company is weighing all options, including selling, withdrawing from, and downsizing its smartphone business”, said an LG official in the Korea Herald in January.
According to DongA, the company stopped development of phones with rollable displays last month and cancelled a planned first-half rollout of all new smartphones. The phone, called ‘The Rollable,’ was shown off by LG at the CES 2021 and was expected to be released later this year.
