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New Report Says LG Will Close Its Smartphone Business; Date Tipped

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At this point, we’ve seen quite a few reports claiming LG is planning to shut down its smartphone business. Well, a new report has just popped up, and it comes directly from Korea, from Korea Times.

LG may close its smartphone business in the near future, announcement coming on April 5

This new report even gave out a date when this shutdown will be officially announced. It says that LG will announce it on April 5, during its board meeting.

Korea Times did reach out to LG Electronics in order to get a comment, but the official said: “There’s nothing to comment on”. He simply added that “All we can say is that every possibility is open. Although we cannot confirm that right now, we will announce the specific direction of our mobile communications business”.

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LG Mobile has been suffering operating losses ever since 2015. The company allegedly tried to sell the business this year, but had no luck in doing so. The company was allegedly in negotiations with Vietnam’s Vingroup, along with some other suitors.

In fact, LG was expected to share more information regarding the future of its smartphone business on March 24. On that day, the company held its shareholders meeting. The announcement didn’t come, though.

LG Electronics is going great

LG Electronics is doing great. The company’s stocks have been on the rise, as it’s doing great in a number of areas. Its home appliances and TVs are doing great for the company, along with a number of other divisions.

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The company has also been expanding its presence in many emerging sectors, such as electric vehicles (EVs). The company partnered up with automotive parts maker, Magna International, in order to manufacture electric motors, inverters, and onboard chargers.

If the company decides to kill off its mobile business, we can expect more such partnerships in the future. If the company makes such a move, its employees that worked in the mobile sector will be reallocated. LG has no intention of letting them go, at least based on reports.