LG Electronics could soon shut down the smartphone manufacturing space entirely. The company, which has difficulty running this department due to financial losses, is considering ending a myth.
At the CES 2021 conference in January, the company made the announcement with a fictional video for LG Rollable, its concept smartphone with a floating screen. Manufacturers had hinted that it would launch the expected device later in the year. But things didn’t go so well. The possibility that not only for the foldable phone, but also other models will never come again has now become clearer.
Why is LG ending phone production?
Until recently, there were reports that LG would sell its smartphone unit to VinGroup. However, the two companies were unable to agree on the price. LG then suspended all its new smartphones in the first half of 2021. It turned out that the company was going downsizing because it could not transfer the department to a suitable buyer.
LG Electronic CEO Kwon Bong-Seok said earlier that they were considering all options for their loss-making business. Mobile device manufacturers are struggling to compete in the global market; There has been talk of LG withdrawing from this battle.
To better analyze the current situation of the company; LG has been losing money in the smartphone market since the second quarter of 2015. Late last year, the department’s total loss exceeded about $4.43 billion. Therefore, in these circumstances, it seems difficult for the company to be transferred from the desired figures. Because so far no figure on offer has satisfied LG.
LG was once the third largest smartphone manufacturer in the world. However, the company, which could not keep up with the competition in the market, lagged far behind its competitors. For now, the company’s future remains uncertain. But senior officials are already seriously considering ending their production as a last-dyed possibility, Bloomberg reported.