Report: LG considers shutting down mobile division after sale talks fall through

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There have been a string of reports that LG is quitting the smartphone business or at least scaling it back. So far, each has been followed by the company denying such claims. Korean publication dongA adds another such report (citing an industry insider) and it sounds like the worst case scenario is the likely outcome.

LG was reportedly in talks with Vingroup as well as Volkswagen as potential buyers for the company’s mobile business. Negotiations on both fronts has failed, reports the publication – with around 1% global market, the asking price was just too high.

This leaves one option to consider – shut down the mobile division. According to dongA, the final decision may be announced to employees as soon as early April. It’s not all bad, the company will try to redistribute employees from its mobile division to the Household Appliances and Automotive divisions, along with other subsidiaries such as LG Energy Solution.

The mobile division has been

struggling for the last five years

As for LG’s upcoming slate of smartphones, those have been put on hold. This includes the Rainbow – the successor to the LG V60. Development on the LG Rollable is reportedly still ongoing, but it is “unlikely” that the phone will be launched commercially.

LG’s mobile division has continued to struggle financially and the company said it was opened to “every possibility”. The final decision on the mobile division’s fate will be announced internally soon, so it will be a while before we have official confirmation whether the company will pull the plug.

Source | Via

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