In a letter to his employees, the LG boss announced that a sale was probably on the table. 60 percent of the mobile division will be shifted to other departments of the firm.
LG management, which recently called allegations that they would withdraw from the mobile market unfounded, changed its mouth. The company is on the ves and deses of making a difficult decision.
LG will make a difficult decision
It was previously raised that LG had talked about its decision to leave the mobile market within the company. LG boss Kwon Bong-seok wrote to his employees, saying they were on the veste of a very difficult decision. A complete withdrawal from the market due to tough competitive conditions, sales or division downsizing are among the plans. 60 percent of mobile department employees will be shifted to other departments of the company. The remaining 40 per cent will continue at the transferred firm or run the shrinking division.
The LG mobile division has been at a continuous loss for the past 6 years and account for a total loss of $5 billion. The loss of the mobile division was somehow melting down because lg’s overall operating profit was positive, but this could go as far as it could go.
Although many interesting smartphone models have been released in recent years, LG has never been able to return to the G2 or G3 eras. Intense moves by Chinese manufacturers during this period attracted LG’s market share to 1.7 percent. At one point, the company planned to produce entry-level phones through third-party ODM, but this was not a savior either.