Reports are coming in which appear to confirm that LG has decided to close down its smartphone business. Business centric publications like Bloomberg and Business Korea indicate that possible buyers have decided not to conclude deals, so LG's smartphone making factories will be closing and launches/investments in this tech segment will end.
Back in January HEXUS reported on a warning letter sent from the LG CEO to staff about the future of the smartphone business. Luckily for employees the boss added assurances that there was still a need for them in other better performing parts of LG's business.
The major change in the business landscape for LG since January seems to be that negotiations with two potential suitors have ended without any favourable outcome. Both Germany’s Volkswagen AG and Vietnam’s Vingroup JSC appear to have finished negotiations with LG for no result.
LG has been increasingly trying to add appeal to its smartphone portfolio with left field designs hoping for a surprise hit but sadly no such luck has been apparent. Moreover, its development of a phone with a rollable display reportedly halted last month. LG is a display technology leader, so it is a shame that some of this R&D seems like it will be going to waste, but perhaps some other smartphone maker will use this rollable tech, as several other firms rely on LG for their displays.
LG's smartphone global market share currently stands at about 1 per cent. The firm is expected to make a decision on its smartphone business final and public by early April.