The numbers are clear: in the third quarter of 2020 LG shipped (unsold) 6.5 million smartphones, with a market share close to 2%. Little if your name is LG Electronics, and you are among the largest consumer electronics companies in the world.
Moreover, numbers are not growing, on the contrary: in the last five years it has always been worse, with the mobile division losing $ 4.5 billion
CEO Kwon Bong-seok decided it can’t go on like this, and sent a message to employees explaining that there would be a major shift in the smartphone division. He also added that no one will be left at home, and that all those who until now have worked on smartphones in the event of a possible closure of the division will be reallocated to the other divisions.
“As competition in the global mobile device market is becoming increasingly fierce, it is time for LG to make a cool judgment and figure out which is the best choice for the company – wrote the CEO – LG is considering all possible measures, including the sale, closure and downsizing of the smartphone business”
According to local media, a decision should arrive today, with an official statement.
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