LG may be making big changes after all this year. When it comes to the mobile business, it’s usually hit or miss. Just recently, we said LG is not shutting down the phone business yet. Now we’re hearing differently as the company is believed to be contemplating on exiting the phone business. It is not clear at this point so we are still taking things with a pinch of salt. According to a source, the other South Korean tech giant has been losing money that past five years. About five trillion won which is $4.5 billion have been lost already.
The latest information we gathered may be true. CEO Kwon Bong-seok is said to have sent a message to the employees saying that there will be a big change in the operations of the mobile business. The executive assured the staff that “employment will be maintained”.
There is nothing to worry, at least, for now. It’s not clear what will happen in the coming months but we can still look forward to the LG Rollable Phone, LG Rainbow, and the LG Q83. The LG official said, “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.”
There will definitely be changes. Every possible measure may be considered like sale, downsizing, or withdrawal of the mobile business. Rumor has it some employees, about 60% of the phone business, will be transferred to other units within LG. An important announcement may be made next week.
LG has been doing everything in its power to improve in the mobile business. We mentioned it outsourcing low-end and mid-range phone business to ODMs. The LG Wing’s arrival made an impression but we’re not sure if the phone is selling. An LG Rollable Phone is being teased the past few months but we don’t know much about it.