We first heard rumors of LG contemplating an exit from the smartphone business back in January. Since then, reports have claimed that two upcoming high-profile phone projects are facing prospects of cancellation, as LG allegedly allegedly approached multiple clients to buy its smartphone division. While the company is yet to confirm those developments, top executives have made it clear that all options – shuttering the business or selling it to another company – are on the table. Now, a new report coming out of its home market claims that LG is altogether pulling out of the phone business and will make a formal announcement on April 5.
As per a report by KoreaTimes, LG has reportedly entered a transition phase where it is relocating employees from its smartphone division to other business units. A company official didn’t comment on the latest development, but mentioned that the company will make an announcement regarding the ‘direction of its mobile communication business’ soon.
“LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business,” according to industry sources, Thursday, adding that the company will make an official announcement at its board meeting on April 5.
Just a few weeks ago, we came across a report claiming that LG was in talks with Vietnam’s Vingroup to sell its phone business. However, another report coming out of Korea earlier this month revealed that the company has failed to find a buyer, after having engaged with Vingroup Co. as well as Volkswagen, forcing the company to shutter its phone division. The only other option left on the table is downsizing the business.
If LG indeed makes an exit from the smartphone business, the biggest casualty would be the LG Rollable phone that has a sliding display. While reports have continued to predict the phone’s cancellation, we’ve also heard rumors of the company pulling the plugs on its V60 ThinQ successor that was poised to debut as a flagship Android phone.