LG is thinking about leaving the costly smartphone business

When you are operating at a loss quarter after quarter, year after year after year, most companies would be taking a long, hard look at why it’s persisting to compete in that segment. Such is the case with LG and its much-maligned mobile division that hasn’t turned a profit since around 2013 despite making memorable handsets such as the Flex, G6, Velvet, and the insanely fun Wing with its dual-displays.

According to the Korean publication, The Elec, LG has allegedly sent out a notification to its employees that it was canning its smartphone division, along with the cessation of development on the rollable smartphone that is supposed to launch sometime this year. This was followed up with more Korean outlets reporting that LG was considering its presence in the smartphone market along with the possibility of selling it.

LG also confirmed to The Verge that the memo sent out to employees is real, the brand also said that for the moment at least, the path forward has yet to be decided. It seems that a Vietnamese company called VinGroup is the current high bidder for LG’s smartphone business, but no decision has been made as yet.

Along with HTC, Sony, Samsung, and Motorola, LG is one of the stalwarts of the Android OS. Launching the first phone with a 3D display, a self-healing rear panel on the Flex, the renowned G2, the stunning G4 with its leatherback finish, the svelte G6 with its wide-angle camera, and of course, the unique Wing that came out of LG’s Explorer Project in the latter stages of 2020. Of the ‘stalwarts’, only Samsung is enjoying prolonged success, with HTC having all but disappeared from store shelves and Sony’s mobile division also struggling to keep its head above water. After 23 quarters of making a loss, you can understand why LG is considering its options.

Hopefully, LG can come up with yet another new mobile strategy for 2021 and stay in the smartphone business, but at some point, it may have to call it quits and concentrate its resources on the divisions that are actually profitable.