LG is now considering ending its race when it comes to the smartphone industry. It was reported recently that they had acquired a total of $4.5 billion of losses from the past five years and now, the company is declining shipments according to The Korea Herald.
According to LG’s CEO, Kwon Bong-Seok, he was cautioning their staff to re-evaluate their priorities in regards to the smartphone industry.
“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.”
The CEO then reassured their employees under the smartphone division that they will not be removed but will be reassigned in future projects of LG.
Over the recent years, LG has noticed a rapid decline when it comes to its smartphone shipments. It then has caused the company to only acquire two percent of the shares. Also, due to its quick decline in the market, there have been 23 consecutive quarters where the company had financial loss which eventually pilled up to $4.5 billion.
Last year, when taking office, LG’s CEO promised that he would help look for ways on how to innovate and strengthen their smartphones in the market. However, with their current situation, it seems that the promise was not met which made them rethink their next move will. Be.
In addition, LG is also ending their production of LCD displays for iPhone (The Elec). LG Display attempted to supply LCD displays for the second generation of iPhone SE but eventually failed to meet the given requirements by Apple. It was then reported that Apple has selected Japan Display and Sharp would be providing their services instead. Nevertheless, the factory where the parts were created would be repurposed into manufacturing automobile display panels.
With some good news, earlier this month, LG revealed one of their newest phones at CES. This will be the world’s first rollable smartphone as this is going to be one of the marketing factors to lure in customers to purchase one. Even with this in mind, the company’s future along with other LG smartphones such as LG Velvet and LG Wing is highly uncertain.
Read: LG Reveals Ergo Monitors with 4K Resolution, 1ms Response Time, Ultrawide
