LG may shut down the smartphone sector instead of selling it
LG may close its smartphone business instead of selling it, as negotiations with German Volkswagen and Vietnam's Vingroup JSC regarding the potential sale of the smartphone business appear to have failed.
It was previously reported that LG is in talks to sell its smartphone division, but its search for a buyer is not going well and it may have to close its smartphone business.
A company spokesman had previously said: LG’s commercial activity regarding phones will not disappear soon, before a new report appears saying the opposite is true in a few days.)
The company has serious ambitions for 2021, including a roll-up screen phone, which received Bluetooth SIG certification, but this phone appears to have been canceled.
The new information also confirms that the company may suspend all new phone releases in the first half of 2021.
In January, the CEO of LG said that all options are on the table regarding loss-making operations.
The information stated that LG may share its decision on the fate of the business with employees as soon as possible in early April.
The history of LG’s smart phone division has been full of failures and continuous tragedies in the past few years, and despite the company's continuous attempts to innovate and amend things, it failed to make a profit from the smart phone business.
The company usually grabs the headlines and does its best to introduce new things with strange concepts, such as the LG Wing, but the truth is that the smartphone division is still losing money constantly, and its efforts to change this tide are not helpful.
The shutdown - if completed - represents a major loss to the Android ecosystem, and although LG has not performed well in recent years in terms of sales, it has been a major historical player in the Android ecosystem.
The company brought legendary phones like the LG G2, and it was also the maker of other popular phones, such as the Nexus 5, Nexus 5X, and Google Pixel 2 XL.