LG is considering selling its mobile business

According to Yonhap News Agency, LG Electronics said that as its mobile division has suffered losses for many years, the company is studying various plans including the sale of its mobile business.

LG is considering selling its mobile business
LG

According to the report, LG Electronics CEO Kwon Bong-seok said in a statement that due to the increasingly fierce competition in the global smartphone market, LG should make the best choice; the company is studying various possible solutions for the future mobile business , Including selling, reducing business scale, etc.

The report also pointed out that the mobile business division in charge of LG’s mobile business has suffered losses for 23 consecutive quarters since the second quarter of 2015. As of the fourth quarter of 2020, the department has accumulated losses of up to 5 trillion won (about 29.36 billion yuan).

LG has made outstanding achievements in the 4G era, but entering the 5G era, LG seems to be unable to do so. According to the data of the research institution Digitimes, the top 6 brands of global mobile phone shipments in 2020 are Samsung, Apple, Huawei, Xiaomi, OPPO, vivo, and LG Electronics is classified as “other”. In the Chinese market, LG mobile phones have long since disappeared.