August 13, 2022

George Cafe Journal

The Power of Success

LG will reportedly shutter its smartphone business next 7 days

LG was a person of the 1st brands to bounce on the Android bandwagon a lot more than a decade ago — it introduced its first handset centered on this OS back again in 2009. But there’s a likelihood that we may well not see an LG-branded cell phone in the foreseeable future.

Soon after failing to market its smartphone business enterprise, the organization is considering shutting the device down. In accordance to a report from The Korea Times, LG will announce this go on April 5, through its board meeting.

In January, multiple rumors of LG marketing its smartphone division arrived to the surface following the company’s leaked interior memo to staffers indicated this stage. A report posted from The Korea Occasions at that time indicated that VinGroup, a Vietnamese conglomerate, was presently in talks with the tech big to strike a offer.

We did not hear anything at all about this partnership just after that, so presumably, the offer fell by way of. People acquainted with the issue instructed The Korea Moments that the organization viewed as many solutions, including product sales, splits profits, or shut down — and finally selected the last a person.

Irrespective of all these rumors, there’s no formal term from LG nonetheless. Past thirty day period, through the shareholder’s meeting, the company’s CFO, Bae Doo-Yong, reported that all options about the smartphone enterprise continue being open up

Above the several years, LG has built some wonderful phones which include the G sequence and the Nexus 5. The business tried out to stand out in a crowd by which include DACs (Digital to Analog Converters) and detachable batteries. In current moments, it has released phones this kind of as the LG Wing that explored an entirely distinctive type component. But all of this hasn’t been ample to attract in money.

LG’s cellphone division has lost a great deal of dollars. In Q4 2020, it lost KRW248.5 billion ($222.9 million), which was far better than Q4 2019, when it lost KRW322 billion ($285.6 million).  This was the 23rd consecutive quarter where by the small business lost money. So if LG simply cannot provide the smartphone device, you cannot actually blame it for shutting it down.

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Posted April 2, 2021 — 05:52 UTC