Asmarket newsLGConfirmIt will end its mobile phone business development at the end of July this year and focus on more profitable businesses, but it emphasizes that it will still invest in the development of mobile phone related technologies in the future, such asFuture 6G mobile network technologyAs for the existing employees of the mobile phone business department, they will be transferred to the development of future products or to the existing product department in the future.
The decision to exit the mobile phone business was primarily driven by six consecutive years of losses, with cumulative losses exceeding US$6 billion in 2020. While LG has consistently introduced innovative mobile phone designs, such as curved screens, self-healing backs, and even earlier enhancements to its sound and camera capabilities, the subsequent release of the flip-screen Wing phone and the rollable Rollable phone unveiled earlier this year also attracted considerable market attention.
Unfortunately, although many of LG's mobile phones have successfully attracted market attention, they ultimately failed to perform well in market sales. For example, the Wing launched last year only sold a total of 2470 million units in the global market, which is less than one-tenth of Samsung's mobile phone sales.
According to LG's explanation, it will end its mobile phone business after July 7 this year. Before that, it will continue to sell its mobile phone products in the market and continue to provide security updates. It will also continue to provide customer services related to existing mobile phone products in various regions.
Regarding future development, in addition to transferring existing mobile phone business department employees to future product development or transferring them to existing product departments, LG stated that it will continue to focus on more profitable TVs and home appliances, while also continuing to invest in emerging businesses such as the Internet of Vehicles, the Internet of Things, and robotics. Products related to the original mobile phone business, such as 6G mobile networks, will continue to develop in the future.
LG has actually considered withdrawing from the mobile phone market for a long time.
LG has actually considered this a long time ago.Adjusting the mobile phone business development model, and even considered shutting down its mobile phone business because mobile phone products have never been able to drive revenue like TVs and home appliances. Therefore, LG CEO Kwon Bong-seok recently considered re-examining his own situation in the face of more intense competition in the mobile phone market and thinking about whether to continue to retain the mobile phone business in the future. He even considered licensing OEMs to allow other companies to build mobile phones through the LG brand, or directly reselling the mobile phone business to others.
originalVingroup, a large private enterprise in VietnamIt was interested in acquiring LG's North American mobile phone business, but subsequent news indicated that the two sides failed to reach a consensus. In the absence of a suitable buyer, LG obviously decided to withdraw from the mobile phone business.
The decision to launch mobile phone market competition at the end of July this year may mean that the company will be unveiled at the beginning of this year.LG RollableIt will not be able to enter the market smoothly, but it is still possible to resell the relevant designs to other mobile phone manufacturers for use, but it may not be launched under the LG brand.
