LG Electronics may shutdown its smartphone business: Report

by Mohit

LG Electronics has announced that it is in the position of continuing its Mobile Communications (MC) division, which reported a 23-quarter deficit in a row. It is being analyzed as a pacification step for officers and employees and a final decision on the MC Division is scheduled for the end of this month.

On the 20th, LG Electronics President Kwon Bong-Seok emailed members of the Mobile Communications Division, saying, “No matter how the MC division’s business operation direction is determined, in principle, the employment of the members will be maintained, so there is no need to be anxious.”

LG Electronic’s Mobile Communications Business Division reported losses for 23 consecutive quarters from the second quarter of 2015 to the fourth quarter of last year. Last year, LG Wing, which innovated form factor, recording sales volume and Chinese companies were moving forward with medium and low-cost phones, which was difficult.

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LG Electronics said, “Regarding the mobile business, we believe that we have reached the point where we have to make the best choice by making a cold judgment on our current and future competitiveness.”

‘All possibilities’ seem to include the withdrawal and sale of the business. An official from LG Electronics said to the media on the 20th that “we are reviewing future operation plans by making a cold judgment on the current and future competitiveness of the smartphone business.”

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