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| LG plans to drop smartphones in 2021 |
LG plans to exit the smartphone market in 2021 after losing around $ 4.5 billion over the past five years.
LG's smartphone business is struggling to compete with its rivals, and LG CEO (Kwon Bong Suk) has now informed employees that the company is planning to make major changes to its smartphone business.
The Korean Herald reported that Shi Shu sent an internal memo to employees on Wednesday, indicating that LG's wireless business has changed.
"With competition intensifying in the global mobile device market, it is time for LG to make a tough decision and make the best choice," LG officials said in a statement to the Korea Herald.
He added: The company is investigating all possible measures, including selling, removing and restricting smart phone activities.
LG confirmed the validity of the internal memo in a statement, stressing that the decision has not been taken yet.
An LG spokesperson said: LG's management is determined to make all necessary decisions to solve cellular business challenges in 2021 and this is not yet complete. Even today.
This new internal statement came after a report issued by the South Korean subsidiary TheElec earlier this month which indicated that LG plans to exit the smartphone business.
LG said in a statement a week ago that the report was completely false and unfounded.
LG had previously promised to attract consumers with stunning looks and make the weak mobile sector profitable.
The company has tried several times to compete with Samsung and Huawei with the G7, V40, G8 and V50, but this is not enough to direct its market share in the right direction.
The latest LG Velvet and Wing phones have tried new features, but none has received good reviews.
According to market research firm IDC, Samsung, Xiaomi, Huawei, Vivo and Apple continue to dominate global smartphone shipments.
LG is now focusing on rewinding phones to set itself apart from the competition.
The company was happy again with the rotary device at the US CES last week, with a unique display that ranges in size from a phone screen to a small tablet screen.
LG has promised that its rewinding machine is real and will hit the market in 2021. However, with rethinking plans for mobile phones, it may be one of the last LG phones we'll see.