LG Electronics is reportedly ready to permanently close down its whole smartphone division, after failed attempts to sell the business off…
LG Electronics’ latest attempt to sell off its struggling smartphone business have fallen through, according to recent reports by Korean news agencies. The global electronics manufacturer has failed to carve out a profitable niche in the mobile handheld market, despite many attempts at innovation. Now, the corporation might close down its entire smartphone operation and notify workers as early as next month. (Those workers would be reassigned to other business divisions, including household appliances and automobile parts.)
LG Reportedly Nearing Total Shut Down of its Smartphone Division
The company was previously in talks with Vietnam’s Vingroup JSC and Germany’s Volkswagen AG to take over its struggling smartphone division, after claiming that it had shelved its plans to launch new mobile phones, including devices called the LG Rainbow, and the LG rollable phone. However, this isn’t the first time such reports have surfaced about the Korean manufacturer’s intentions to get out of the smartphone business altogether. Previously, there have been similar reports, as the conglomerate continues to lose money in its smartphone sales.
LG can’t seem to find a steady place in the market, dominated by Apple, Samsung, and Google. Although margins on smartphones are quite high, ranging from 62% up to as much as 74%, LG hasn’t been able to turn a profit in its mobile division for some time now. While it’s still possible the company could turn its fortunes around in this particular division, it’s not likely to happen in a such a tightly consolidated field.