According to a new report out of South Korea, LG was unable to find a buyer for its mobile division, and it may be killing off the division entirely now.
This comes after a number of reports that LG had been looking for a buyer to sell off its mobile division. Which LG promptly denied. And now it is “strongly leaning towards” shuttering the mobile arm of the business.
This report also notes that LG had already stopped working on its entire 2021 smartphone lineup. That included a new LG Velvet smartphone and the rollable phone it teased at CES 2021.
LG was apparently in talks with Vingroup (a Vietnamese company) and even Volkswagen. However, talks were halted.
LG’s mobile division has been struggling for years
LG’s other divisions were propping up the mobile division. Specifically its TV division. While its mobile division continued to lose money each and every year, basically since they started using Android over a decade ago.
And LG’s CEO had hinted back in January, that nothing was off the table in regards to the mobile division. Stating that “since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgement and the best choice.”
LG had been one of the bigger smartphone makers on the Android side of things. But the thing about smartphones is, unless you’re moving hundreds of millions of units, you aren’t making money. The only companies making money are Apple and Samsung. Simply because of the volume.
LG was first with a lot of different smartphone technologies, but their biggest issue was marketing. Most people didn’t know that their phones had ultrawide cameras before everyone else got it. The other major issue for LG is software. Hardly ever updating its phones, is a pretty big issue. And of course, we can’t forget the bootloops of the past. Though this hasn’t been an issue for a few years now.
It’s always sad to lose a competitor in the smartphone space, but LG wasn’t really that competitive in recent years, anyways. As it looked for ways to stand out. And ultimately didn’t stand out enough.