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LG may shut down its mobile phone business: Report

The report comes even as LG Electronics CEO said that they are keeping all options open to cover the loss-making business.

LG Electronics Inc. could well pull the plug on its mobile communication business, as per a report by DongA Ilbo. The company has made a number of efforts to sell the unit, but the negotiations with Germany’s Volkswagen and Vietnam’s Vingroup JSC did not go through.

The report comes even as LG Electronics CEO said that they are keeping all options open to cover the loss-making 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…The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business,” the LG CEO told the employees in an internal memo.

It needs to be mentioned here that LG recently launched an ambitious Explorer Project to offer phones with completely reimagined form factors. The first phone which was rolled out under the project was LG Wing, and this comes with T-shaped swivelling displays. At the Consumer Electronics Show this year, LG also unveiled a rollable smartphone.

However, as per the latest report, LG has paused the development of rollable phones and a planned first-half rollout of new handsets. We can expect a formal announcement of this decision to the employees as early in April.

LG was one of the leading brands not too long ago, but it slipped ever since the likes of Apple and Samsung as well as brands like Xiaomi and Realme have continued to dominate the budget segment. There is a report that says that LG had to suffer a loss of around $4.5 billion over five years.

The company CEO earlier this year assured them that the changes would not mean job losses. “Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” he added.

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