LG exits the smartphone market: After six consecutive years of losses and a promised $ 5 billion investment, it looks like LG is really leaving the smartphone market. In a message to his employees, CEO Kwon Bong-seok has said it is time to make a tough judgment about the ailing smartphone branch. That writes the Korea Herald.
LG exits the smartphone market?
The reason behind this is not far off: the competition is very fierce. The message to employees therefore states that the CEO is considering various options. He can sell, downsize or withdraw from the smartphone branch.
Kwon has been the CEO since last year and at the time promised that the smartphone business would become profitable again in 2021. The man did not hint at how he planned to do that, other than by releasing phones that have a wow factor. Since then, LG has developed the Velvet launched (with a second screen in the case) and the Wing (with a second, rotatable display).
It is also the case that LG recently, during CES 2021, a phone with a retractable screen presented. That smartphone should be released sometime in 2021. As cool as this model looks, it won’t be enough to turn the tide for the company. The Rollable will be a premium high-end smartphone, which many people cannot afford.
The letter also states that sixty percent of the staff of the smartphone branch can find work elsewhere within the company. What will happen to the other 40 percent is not clear. LG would do well to keep those people on board, so that the knowledge and experience remains within the company.
Sony is in a similar situation regarding the smartphone market. The company has a distressed smartphone division, but continues to release smartphones. As a result, Sony can always use its own technology in other departments, which ultimately also saves costs.