According to Korea Times, LG Electronics is looking to sell its mobile business still. LG’s mobile business has been having a rough go of it recently. As a result, LG is looking to sell off its mobile phone factories. LG Electronics recently attempted to sell its mobile factories to Vingroup.
Vingroup’s offer did not meet LG’s expectations. As a result, the deal did not work. The negotiations had been ongoing with Vingroup for LG to sell its smartphone-manufacturing facilities in Vietnam and Brazil. However, the price difference was mostly the reason why the deal fell through.
Thanks to deficits recently, LG is putting its mobile phone business up for sale. The reason for the sale is so the company can focus on other areas like electric vehicle components. As the largest listed firm in Vietnam LG considered the company as the right bidder. Especially since Vingroup has been looking to expand into high-tech industries.
LG Electronics is looking to sell its mobile business to recover its losses
Despite this, Vingroup’s low offer price has sunk any future negotiations going forward. LG is looking for another buyer and that their existing factories can be repurposed to manufacture home appliances.
However, this doesn’t mean LG is not looking to sell its manufacturing plants. LG will continue looking to sell while also holding on to its intellectual properties in mobile technology.
LG says that employees working for its smartphone unit will be reallocated. As a result of CEO Kwon Bong-Seok announcing significant changes, the plan to withdraw from the mobile phone market began a month ago.
Unfortunately, LG’s rollable smartphone, which was introduced at CES in January, will seemingly be scrapped. This is unfortunate news. Especially since the rollable design garnered a lot of attention.
Development on the interesting device was put on hold according to a local media outlet. LG told its partners, including BOE, to put development on hold. As a result, the innovative device may not see the light of day.
LG Electronics has been looking to revive its mobile phone business in recent years. However, the mobile business continues to lose money. Since 2015 the mobile division has seen losses for 24 straight quarters. These losses total an amount of 5 trillion won ($4.5 billion).
News that LG Electronics is looking to sell its mobile division is pretty sad. LG has made some really good smartphones in recent years. The LG G4 was a great device, and so were the LG Nexus 5 and Nexus 5X.
Although LG never garnered the popularity of its Korean rival Samsung, nonetheless LG has produced some solid devices. Hopefully, LG will release its rollable device as it’s final hoorah.