Despite the recent premiere of his new rollable phone technology and capture its fair share of excitement in 2021 Consumer electronics fair, According to a Wednesday report by The Korea Herald, LG may consider ditching smartphone gaming entirely. The tech giant faces stiff competition from other manufacturers as it seeks to offset a $ 4.5 billion loss over the past five years.
LG's CEO Kwon Bong-seok reportedly sent a memo to employees on Wednesday telling them that he was considering a number of options for the company's smartphone division, including a sale.
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"Regardless of a change in the direction of smartphone business operations, employment will remain so there is no need to worry," said Bong-seok.
LG was in the mix of the best Android gamers in the early days of the modern smartphone era, building on its success in the candy bar and flip phone era. But as larger conglomerates like Samsung and Huawei got more involved, attracting newcomers like OnePlus to hardcore enthusiasts, companies like LG have increasingly been supplanted, especially in the premium phone market where the iPhone and Galaxy S families have long dominated.
After years of experimenting with gimmicks like one Option for modular parts For the past three years, LG's lineup of flagship phones has been largely conservative, offering high-end specs and a nondescript look at a modest price. That has changed with the in the last few months double swiveling screen LG Wing, which was launched in the fall, and the rollable, which was introduced at CES. However, the craze for these phones hasn't changed the fact that the company has faced significant financial headwinds in recent years.
"As competition in the global mobile device market grows fiercer, it is time for LG to deliver cold judgment and make the best choice," a LG official told The Korea Herald. "The company is considering all possible measures, including selling, taking back and downsizing the smartphone business."
An LG spokesman confirmed the memo to CNET, noting that the company was exploring a variety of options. "At the moment, nothing has been finalized and further comments would only be speculation," said LG spokesman Ken Hong.