LG Electronics will reportedly shut own its mobile communication business instead of selling it. The development comes as negotiations with Germany’s Volkswagen AG and Vietnam’s Vingroup JSC on the possible sale of the smartphone business have reportedly failed, according to Bloomberg, which quoted DongA Ilbo. Also Read - YouTube, Gmail, Google Maps stops working on these phones from today: Check if your phone is in the list
Earlier this year, The Korea Herald reported that LG may exit the smartphone business in 2021 after losing about $4.5 billion over the past five years. Also Read - LG TV 2021 lineup launched in India: Check details here
The report quoted CEO Kwon Bong-seok who said in a message to staff that regardless, there will no layoffs. Further, the company was said to consider all possible options including sale, withdrawal as well as downsizing of the smartphone business. Also Read - LG Gram 2021 series with 11th-gen Intel Core CPUs launched in India: Price, specifications
LG last month halted the development of its rollable display smartphone, the LG Rollable that it showcased at the CES (Consumer Electronics Show) 2021 in January. “It is known that the possibility of launching ‘LG Rollable’, which has attracted attention, is also slim,” as per the DongA report.
The highlight of LG Rollable is a resizable screen with a side-rolling display. The smartphone is a part of the company’s Explorer Project. The company had announced at CES that LG’s Mobile category aims to deliver new devices with different form factors that will upgrade the user’s experience.
LG is said to share its decision on the mobile communication business division with its employees in April. To recall, an LG spokesperson said in a statement to The Verge in January, “LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021.”