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LG Smartphone Division for Sale?

LG Smartphone division might be considering leaving the market ...


Article By Betallion44

January 20, 2021, 12:54 pm

LG is one of the smartphone manufacturers who has been struggling in the industry for at least the last six years. It tried various strategies and ideas but nothing attracted the attention of the users. It witnessed a sequence of many loss making quarters and thus it was only time that investors lost their patience. 

It is now speculated that LG might be considering moving away from smartphone business altogether, but it is still undecided. The higher management is considering all options and this has also been confirmed by the CEO that “all possibilities are open”, as reported by Yonhap News. 

The CEO further elaborated, 

“LG Electronics has come to the point where it is time to make the best choice by calmly judging its current and future competitiveness in the mobile business. Currently, all possibilities are open and the direction of business operation is carefully reviewed”.

Although the CEO did clear the air regarding layoffs, and stressing that members of the smartphone manufacturing division will still be employed, even if the division is shut down. This indicates that other divisions will absorb the workforce from smartphone division.

Furthermore, Android Authority investigated the rumors and and an LG official spokesperson replied:

“LG Electronics has come to the point where it is time to make the best choice by calmly judging its current and future competitiveness in the mobile business. Currently, all possibilities are open and the direction of business operation is carefully reviewed”.

LG has almost 13% US market share in the smartphone industry, which places it in third position. If LG sells the smartphone operations in the US, then any buyer could leverage that position and does not have to start from scratch, as the US market is most difficult to capture due to strong competitors. 

Let us see what decisions are taken in the upcoming board meetings. Let's hope LG decides otherwise and challenges the market once more.

#LG #Smartphone #Sale
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