As The Korea Herald reports, LG is considering the future of its smartphone business, or if it even has a future. On Wednesday, LG CEO Kwon Bong-seok sent out a message to employees explaining there is set to be a change to how the mobile division operates, but that “Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry.”
The need for change should come as no surprise when you learn that LG has lost around $4.5 billion attempting to compete in the smartphone market over the past five years. An operating loss has been posted by the division for 23 consecutive quarters going back to 2015.
“Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice,” an LG official explained. “The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.”
Kwon has been LG’s CEO since January 2020 and in December told reporters the company would focus on the premium smartphone market while cutting costs in 2021. It now looks as though 2021 could end up being the last to see new LG phones released.