LG seriously considering exiting the smartphone business, all options on the table
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LG is pondering whether it should exit the smartphone business altogether. The Korean tech giant has recorded twenty three consecutive quarters without a profit with losses totalling over US$4 billion across the past five years. Rumors first surfaced about the drastic measures being considered earlier this week that the company moved to quickly quash, however a memo from CEO Kwon Bong-seok to staff has now confirmed their worst fears.
An LG official had this to say:
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. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.
It was only in December it emerged that LG was moving to outsource its entry to low mid-range models to third-party vendors. At the time, the plan was for the company to continue making premium mid-range and high-end smartphones including the experimental LG Wing and the purportedly forthcoming LG Rollable smartphone-tablet hybrid -- there is a real danger now, however, that this device might not see the light of day. It is sad news for fans of mobile phones as although LG has never achieved the smartphone success of domestic arch rival Samsung, it has often been the first to introduce innovative new features.