LG may stop developing and selling smartphones. The manufacturer confirms this to various media. Further reducing or selling the smartphone branch are also options. LG will make a decision later this year.
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Option: LG will stop with smartphones
The striking announcement follows after reporting by The Korea Herald. The South Korean newspaper received an email from LG’s director to inform staff about LG’s options in the smartphone division. The e-mail does not come out of the blue: LG has been losing money to its smartphone branch for years and sells very few devices. Brands such as Apple, Samsung and Xiaomi make LG particularly difficult.
The LG CEO writes in his email that the “battle in the global smartphone market is getting fiercer and that it is time for LG to make a cool decision and the best choice.” The company is considering all possible measures, including a sale, the withdrawal and reduction of the smartphone branch. ‘
LG confirmed the authenticity of the email The Verge and says that “LG’s management is committed to making whatever decision is necessary to solve the challenges of its smartphone business in 2021.” No decision has yet been taken, emphasizes the manufacturer.
Update policy uncertain
That LG admits that it is considering stopping its smartphone division is special, because the brand said a week ago that stopping is not an option. LG accused a website that already reported about the plans last week of lies, but will come back to that.
It is unclear at what point LG will make the decision in 2021. The different options are in any case not positive for owners of a recent LG smartphone. Because if LG stops with its smartphones, will the company continue to roll out Android and security updates for devices such as the LG Velvet and LG K61? And what about the recently released LG Wing, one of the most expensive smartphones of the moment at a thousand euros.
Rollable LG smartphone
The future plans with as yet unreleased smartphones are now also becoming more uncertain. At the beginning of January, LG showed a teaser of a device that is rolling out and thus gets a larger screen. This LG Rollable will appear later this year, according to the manufacturer, but details are still unknown. If LG decides before the announcement of the Rollable that it will stop developing smartphones, the device will probably never appear on the market.