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LG seriously considering exiting the smartphone business, all options on the table

Teased only last week, the LG Rollable may not launch this year as had been planned. (Image: LG)
Teased only last week, the LG Rollable may not launch this year as had been planned. (Image: LG)
LG is considering exiting the smartphone business despite teasing new devices as recently as CES 2021 last week. The company’s CEO Kwon Bong-seok has informed staff that all options are currently on the table including exiting the market, a potential sale or downsizing.

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.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 01 > LG seriously considering exiting the smartphone business, all options on the table
Sanjiv Sathiah, 2021-01-20 (Update: 2021-01-20)
Sanjiv Sathiah
Sanjiv Sathiah - News Editor - 1181 articles published on Notebookcheck since 2017
I have been writing about consumer technology over the past ten years, previously with the former MacNN/Electronista, and now NotebookCheck since 2017. My first computer was an Apple ][c and this sparked a passion for Apple, but also technology in general. In the past decade, I’ve become increasingly platform agnostic and love to get my hands on and explore as much technology as I can get my hand on. Whether it is Windows, Mac, iOS, Android, Linux, Nintendo, Xbox, or PlayStation, each has plenty to offer and has given me great joy exploring them all. I was drawn to writing about tech because I love learning about the latest devices and also sharing whatever insights my experience can bring to site and its readership.