LG Stops Launch of New Smartphones

LG has stopped the release of all new smartphones. According to some media news, Korean company is increasingly considering the closure of its troubled Mobile Communications unit due to a lack of progress with potential buyers.

The electronics giant had discussed a part or complete sale with Vietnam-based Vingroup and Germany-headquartered Volkswagen Group. A majoer obstacle is the Mobile Communications’ units global market share to securing an attractive price. Counterpoint Research data showed it held a 2 percent share in 2020.

According to unnamed source, development of the LG Rollable was on hold, with slim chances of it launching.“No decision has been made as of yet on the future of LG’s mobile business, and it definitely won’t be made at a shareholders’ meeting,“ LG representative said.

In mid-January, local media reported LG was reviewing the future of the device division, considering downsizing, selling or pulling out of the market entirely. The unit recorded a  loss of KRW248.5 billion ($220.1 million) in 4Q20, down from a KRW332 billion loss in the comparable 2019 quarter.