The South Korean LG is even inclined to end the activities of the company’s mobile communication sector, which includes the manufacture and sale of smartphones. The information is from the local website dongA.com, republished by Bloomberg, which would have obtained confirmation based on an anonymous source.
According to the report, the current market of just 1% in smartphones has made the search for a buyer even more difficult. Even so, the brand still has a relatively established market in regions such as South Korea and the United States – not to mention Brazil, which always receives the basic models and even the top of the line from LG.
The company would not have found any buyer for the sector, which is not going through a good time, but reached out to talk with Vingroup JSC, from Vietnam, and the automaker Volkswagen. In case of termination of activities, employees would not be dismissed, but relocated to other departments. The decision must be communicated internally as of April this year.
Long standing problems
The latest rumors about the sale of LG’s mobile division began in January 2021, a period in which the absence of new cell phones and outsourcing in part of the fabrications raised suspicions about the progress of the sector. At the time, an executive from the manufacturer denied any withdrawal from the area.
LG finds it difficult to profit from the sector, recently also investing in projects with a more daring look, such as LG Wing with two screens, or LG Velvet, a top of the line with differentiated design.
At the end of the month, speculation returned, at which point the name of the Vietnamese group emerged as a possible buyer.
Details about the shutdown of the LG Rollable project were released shortly afterwards, with the company also denying that the sliding screen device would have been abandoned.
For now, LG has not commented on the new rumors, but TecMundo has contacted the brand and will update this news if there is an official position.