According to the Korea Times, LG is expected to announce the closure of its mobile branch on April 5 at a board meeting.
Since the start of 2021, rumors have been rife about the fate of the mobile branch of giant LG Electronics. In January, company boss Kwon Bong-seok broke a statement that sounded like a bombshell: The company was considering several options for the future of its mobile division.
No sales in the program
Does it intend to sell its activity dedicated to smartphones, or more simply to stop it definitively? As a reminder, LG suffered heavy financial losses in the mobile sector: 700 million euros in 2020, with 23 consecutive quarters in the red. That is to say. The company now has a 1% market share in the world.
According to Korea Times, the oldest English-language newspaper published in South Korea, LG Electronics has taken a decision: to withdraw from the smartphone market. A sale would have been under consideration, but negotiations with various buyers – including the Vietnamese Vingroup – would simply not have succeeded.
Verdict on April 5
According to a source familiar with the matter, LG Electronics would take advantage of a board meeting scheduled for April 5 to formalize the news. The employees of the mobile branch could then be redirected to the household appliances division. See you on April 5 to know the outcome of this case.