LG considering options to opt out of smartphone business

LG is known for launching new and innovative tech products every now and then. Recently it also showed off its capabilities with its new rollable phone tech that grabbed a lot of attention at the 2021 Consumer Electronics Show. But contrary to its intensions and focus, there are reports that the company might depart from the smartphone sector. LG is reportedly facing a tough competition from the other giants in the market. It has also faced a $4.5 billion loss over the past five years.

There are also reports that LG CEO Kwon Bong-seok has sent memos to the employees on January 20, 2021. The memo has notified the employees about its intensions to consider a number of options for the smartphone division of the company and that it could also consider the option of sale. Bong-seok also assured that despite the change in the direction of the smartphone business operation, the employment will be maintained and that the employees need not be worried.

It was during the early days of LG, it was counted among the top smartphone players and had touched success with its candy bar and the flip phone’s popularity. But soon other giants in the market came up slowly and steadily and upped their standards. Even company like OnePlus gave a tough fight with its budget smartphones with heavy features. Under such circumstances, companies like LG soon saw a rough phase.

An official from LG said that since the competition in the market has become fierce, it is time for the company to take some practical decisions and the best choice. It was also informed that LG is considering all the options that includes a sale, withdrawal or even downsizing the smartphone business. A spokesperson from LG has confirmed about the memos that have been sent to the employees but added that nothing has been finalized and that commenting anything further could only be a speculation.

Photo Credits: The Next Web