LG is considering exiting the smartphone market in 2021. After losing around $4.5 billion over the past five years, LG’s smartphone business has been struggling to compete with rivals. Now LG CEO Kwon Bong-seok has notified employees that the company is considering making big changes to its smartphone business.The Verge
As smartphones have grown in ubiquity, they have become a commodity. There is a no revolution that will happen in smartphones for the foreseeable future – only evolution. LG has been a significant player in the world of Android phones, however it has not been a profitable sector for the South Korean electronics giant.
Now, LG is probably done building phones because there is no money to be made by doing it. Some folks from the company say no, others have more information about it all, and other companies are even ready to buy. Whatever happens, it will mean the death of LG as we know it today.
This isn’t really surprising if you look at which phones sell, how they are sold, and why people buy them — and you see LG losing in every category.
You can’t talk about the imminent death of LG’s mobile division without talking about mobile as a whole.
Mobile as a category of consumer tech is weird. The three companies that own all the mindshare and make all the profits are Apple, Google, and Samsung.Android Central
Although, it’s new CEO also said it’s mobile division will turn a profit in 2021, and they do plan on expanding their offerings
LG is still clinging to its dying smartphone business. The company’s new CEO, Kwon Bong-seok, (who was appointed just last month!) promised a return to profitability for LG’s mobile division by 2021
“LG Electronics’ mobile business is going to be profitable by 2021,” Kwon told The Korea Times. “I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers.”ARS Technica