There seems to be no other way out. After a string of negative results that spans more than half a decade, and the intention to sell the brand to third parties for the construction of smartphones has been revealed, LG seems to have taken a final decision about the phone division and will share it this Monday, April 5. This would imply the dissolution of this department and the reassignment of a large part of the staff to other business areas.
According to sources cited by the Korea Times, “LG has considered various options such as a sale, split sales or withdrawing from the smartphone business, but recently decided to withdraw from the business.”
When asked about the company’s plans, the sources mentioned by the outlet indicated that there were no further details: “All we can say is that all possibilities are open. Although we cannot confirm that at this time, we will announce the specific direction of our mobile communications business ”, the official said.
A story that stayed in time
Since 1996, LG’s mobile division began to produce equipment under the CDMA standard, establishing distribution alliances with Ameritech and GTE from the United States. Over time, the firm positioned itself as a leader in the mobile sector in Australia, started an aggressive export chain to Europe and obtained a monthly volume of 2.5 million pieces of equipment shipped to the Middle East during 2003, becoming the largest CDMA phone manufacturer in the world.
}For years, LG it remained a differential element of the mobile industry. It was one of the brands that moved the interaction of the buttons to the back cover of the smartphone with the LG G2, one of the first to implement the QHD + resolution in 2013 with the LG G3. Over time, decisions to develop modular equipment or with previous generation processors began to discourage the market, I was beginning to see the rapid growth of the Chinese proposal in the market. This, coupled with the brand’s late response to the growing mid-range market with better conditions, has led to this outcome.
Another less assistant to the MWC
This statement coincides with a series of retreats at the Mobile World Congress in Barcelona on June 28. To date, 8 technology firms have decided to cancel their presentation and LG would not have confirmed their presence. In 2020, the South Korean brand was the first to suspend its activities for the technology fair, a decision replicated by other companies in a domino effect that caused the cancellation of the most important mobile event in the world.