LG plans to stop making smartphones

LG is considering stopping making smartphones. CEO Kwon Bong-Seok informed the company’s staff in an internal memo. The company’s smartphone division has been running at a loss for several years.

The Korea Herald was the first to publish the internal memo hinting at LG’s exit from the smartphone sector. The company said in an official statement to the newspaper that “competition in the global mobile device market is becoming increasingly fierce.” “It’s time for LG to judge and make the best choice,” the company said.

LG would consider “all possible options”, including selling its smartphone division or a complete withdrawal from the sector. Reducing its mobile branch is also mentioned as an option. The company already indicated at the end of last year that more and more of its future phones will be developed by third parties; LG would only focus on high-end smartphones.

The company has confirmed to The Verge that the internal memo is correct, although a company spokesperson said no official decision has yet been made. “LG Electronics management is committed to making every decision necessary to solve mobile business challenges in 2021,” said the spokesperson for the South Korean company.

There have been rumors for some time that LG would stop its smartphone division. TheElec published a similar message on January 15, although that story has since been removed. LG firmly debunked this rumor to Android Police. The company confirmed at CES that its Rollable smartphone will hit the market this year. That phone will have a roll-up screen, as the name suggests.

LG will launch its Rollable smartphone later this year