After failing to promote its smartphone enterprise, the corporate is contemplating shutting the unit down. In response to a report from The Korea Instances, LG will announce this transfer on April 5, throughout its board assembly.
In January, a number of rumors of LG promoting its smartphone division got here to the floor after the corporate’s leaked inner memo to staffers indicated this step. A report revealed from The Korea Instances at the moment indicated that VinGroup, a Vietnamese conglomerate, was already in talks with the tech big to strike a deal.
We didn’t hear something about this partnership after that, so presumably, the deal fell via. Individuals conversant in the matter informed The Korea Instances that the corporate thought of many choices, together with gross sales, splits gross sales, or shut down — and finally selected the final one.
Regardless of all these rumors, there’s no official phrase from LG but. Final month, in the course of the shareholder’s assembly, the corporate’s CFO, Bae Doo-Yong, mentioned that each one potentialities relating to the smartphone enterprise stay open.
Through the years, LG has made some nice telephones together with the G collection and the Nexus 5. The corporate tried to face out in a crowd by together with DACs (Digital to Analog Converters) and detachable batteries. In latest occasions, it has launched telephones such because the LG Wing that explored a wholly completely different type issue. However all of this hasn’t been sufficient to attract in cash.
LG’s cellphone division has misplaced some huge cash. In This autumn 2020, it misplaced KRW248.5 billion ($222.9 million), which was higher than This autumn 2019, when it misplaced KRW322 billion ($285.6 million). This was the twenty third consecutive quarter the place the enterprise misplaced cash. So if LG can’t promote the smartphone unit, you’ll be able to’t actually blame it for shutting it down.
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Printed April 2, 2021 — 05:52 UTC