Recently, LG has filled the headlines not only in the technology media in connection with the alleged plan to leave the smartphone market. Now these speculations have been strengthened by the news that the former smartphone giant is in talks to sell its mobile division to the Vietnamese conglomerate Vingroup.
Vingroup's portfolio spans a wide variety of industries, including hospitality, tourism, real estate, construction, car business, distribution, and last but not least, smartphones. At the end of last year, its market capitalization was 16,5 billion dollars (roughly 354 billion crowns). It already produces smartphones for LG under an ODM (original design manufacturing) contract.
LG has been experiencing rough times in the field of mobile business for a long time. Since 2015, it has recorded a loss of 5 trillion won (roughly 96,6 billion crowns), while the company's other divisions showed at least solid financial results.
According to the website BusinessKorea, which broke the news, LG is interested in selling its smartphone division to the Vietnamese giant "piece by piece", as it would be very difficult to sell it in its entirety.
That LG is considering making major changes to its mobile business was hinted at by its internal memo a few days ago, which mentioned "sales, withdrawals and downsizing of the smartphone division".
The latest development does not bode well for the potentially revolutionary phone with a rollable display Lg rollable, which debuted (in the form of a short promo video) at the recently concluded CES 2021 and which, according to "behind the scenes information", should arrive sometime in March.
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