LG is considering leaving the mobile business entirely, after negotiations for selling it failed.
There was a time where LG was a legend in the smartphone industry, having once been the third largest manufacturer of smartphones. It’s just sad to see this is their downfall now.
LG had negotiations with VinGroup and Volkswagen Group to sell their smartphone business. The negotiations failed because LG’s smartphone share was awfully below or around 1%, and the asking price was just too expensive for VinGroup to afford.
LG was reporting losses as much as US$4.4 billion within last year alone. That’s a really unfortunate loss. The mobile division of LG is not profitable anymore and is just causing harm for the company.
According to Counterpoint, LG was the ninth largest smartphone manufacturer, having shipped a total of 24.7 million phones last year, accounting for 2% of the total market share. This is not a good result though, as this was a sharp drop from the 15% they had in 2019.
With negotiations failed, LG only has one reasonable thing to do: shut down the mobile business forever. For once who was a legend, now only lives in memory…