LG has finally decided to cancel the sale of its smartphone division. According to some sources, negotiations with potential buyers have failed, with the manufacturer asking too high a price for the transaction. The future is therefore very uncertain for the branch, which has collapsed over the years.
Geez, no one wants LG's smartphone division . Starting with the manufacturer itself: since the start of the year, rumors have circulated around its potential exit from this market . The cause is a collapse in sales which has continued to widen for years. In total, LG has lost 3.743 billion euros in just five years . Bong-Seok Kwon, CEO of the company, is said to have resigned himself by declaring in an internal memo that "it is time to make the best choice by calmly judging its current and future competitiveness in the mobile sector" .
LG thus approached a Vietnamese manufacturer by the name of VinGroup at the end of January. Since then, we have had no news of the negotiations between the two firms. The group would also have also offered a price to Volkswagen. Unfortunately for the latter, it would seem that this is again a failure . According to a source familiar with the matter, the sale was canceled because of the excessively high price charged by LG. As a result, the smartphone division may well have to disappear forever.
THIS IS THE END FOR LG SMARTPHONES
Still according to the same source, LG would have completely abandoned the idea of reselling its mobile branch . The management would thus plan to reveal their future to the employees of the department as of next April. Without the prospect of redemption, and unless you find a final way out, it is a safe bet that it will not be radiant.
The finding will probably not be better for smartphones under development. On the occasion of CES 2021, LG presented the Rollable, a rollable smartphone capable of transforming into a tablet . Scheduled for the first quarter of 2021, the release will surely not take place . The manufacturer would indeed have stopped production last month.
Source: Donga