LG has disclosed that is considering exiting the smartphone market in 2021. The company CEO Kwon Bong-Seok sent out an internal memo to staff, hinting at changes in its phone business.
“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,” says an LG official in a statement. “The company is considering all possible measures, including the sale, withdrawal, and downsizing of the smartphone business.”
LG’s Smartphone business has reportedly lost the company about $4.5 billion in the last five years. The losses have been attributed to high competition in the Smartphone market with LG trailing after giant manufacturers, Samsung, Apple, Huawei among others.
LG confirmed to The Verge that the contents of the internal memo were true, but that no solid decisions had been arrived at yet “LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021,” says an LG spokesperson. “As of today, nothing has been finalized.”
LG attempted multiple times to compete with Samsung and Huawei through their flagship phones G7, the V40, the G8, and the V50. However, despite promising “wow factors”, LG has not been able to impress users enough to clinch the smartphone market.
Samsung, Huawei, Xiaomi, Vivo, and Apple have dominated the Smartphone market in the past few years.
LG recently announced that it will be unveiling its first rollable design smartphone in 2021. The company confirmed the product through a teaser during the Consumer Electronics Show.
The rollable phone has a unique resizable screen that extends from a phone into a small tablet display. The screen slides in and out of place to launch a bigger screen.
If indeed LG decided to wrap up its smartphone business, the rollable phone might be among the last that users will see from the company.