Recently, reports have been floating around that LG is considering selling its loss-making smartphone division for several years. More recently, the former smartphone giant was supposed to sell the division to the Vietnamese conglomerate VinGroup, but the parties did not reach an agreement. Now, according to Bloomberg, it looks like the company has decided to shut down the division.
According to unofficial information, the "deal" with the giant VinGroup fell through because LG had to ask too high a price for the loss-making division. LG is also said to have suspended its plans to launch all new smartphones (including the LG Rollable concept phone) in the first half of the year. In other words, given that the company has not found a suitable buyer for the division, it appears to have no choice but to close it.
The smartphone business of the South Korean technology giant has been generating a continuous loss since the second quarter of 2015. As of the last quarter of last year, the loss was 5 trillion won (about 97 billion crowns).
If the division were to be closed, the former top three (behind Samsung and Nokia) would leave the smartphone market, and it would certainly be a shame not only for fans of this brand. In any case, LG was unable to catch the onset of predatory Chinese manufacturers, and despite the fact that it released good (and often innovative) phones on the market, it was simply not enough in very tough competition.
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