LG Considers Stop Making Smartphones Amid Tremendous Loss Of $4.5 Billion

After suffering $4.5 billion losses in the last five years and decreasing shipments, LG is reportedly thinking about withdrawing from the smartphone business altogether.

In a staff meeting yesterday, the company's CEO Kwon Bong-Seok said that it was considering leaving the business:

He assured that regardless of the decision, LG would keep the current employees in the smartphone division and reassign them.

The market share of LG on the smartphone market is believed to be only 2% and the last few years have seen the company’s shipment declining rapidly. Its total loss from the business is estimated to be $4.5 billion.

When taking over as CEO earlier this year, Kwon Bong-Seok said he would change the situation so what he said during the staff meeting was considered an admission of failure to make a profit from the smartphone business.

According to Pulse News, Vietnam’s largest private corporation Vingroup is showing interest in acquiring part of LG smartphone business.

As stated by a person familiar with the matter, Vingroup is on its way to expanding its smartphone capacity, eyeing the international market. So if the deal comes through, Vingroup might acquire LG’s manufacturing division in Vietnam or its smartphone business in the U.S.

Meanwhile, LG will reportedly end its LCD production for iPhones. The company LCD division attempted to win a contract with Apple to supply the display for iPhone SE 2 but lost to Sharp and Japan Display as it failed to meet Apple’s requirements.

The factory that used to make the display has been repurposed and now it is manufacturing automobile display panels.

During this year’s CES, LG teased its rollable smartphone in a bid to win customers’ interest. However, with the CEO considering exiting the business, the phone’s future is now unclear.

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