LG Quietly Exiting the Phone Business? Here's all We Know

A rollable smartphone  was introduced at CES 2021, which pointed in the direction that LG has not run out of ideas for its smartphone business. At the turn of the year LG also refuted the rumors about exiting the smartphone business saying these assumptions are “completely false and without merit.”

However in a dramatic turn of events, the company CEO has sent an internal memo, hinting there would be a major change in the mobile division's operation. Kwon Bong-seok, Chief Executive at the Korean company, said “regardless of any change..., the employment will be maintained, so there’s no need to worry”. The official explained that the market is getting more and more competitive, and it is “about time LG makes a cold judgment.” He also added: “The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.”

Meanwhile, all these didn't just happen in one day. This decision was led by the loss of about $5 billion over the past 5 years since LG's smartphone business has been struggling to compete with rivals.

A representative for LG says that the company is “committed to doing what is in the best interest of the company and its mobile business. That said, nothing has been finalized and any report to the contrary is pure speculation.”