‘Big changes’ underway for LG’s mobile division

After years of rumors and repeated rumors, the future of LG’s smartphone division has once again been the subject of speculation as LG CEO Kwon Bong-Seok reportedly sent a message to staff on Wednesday suggesting that ‘there could be some major changes coming.

After years of losses, while the possibility for LG to exit the telephony business or sell its smartphone division shouldn’t come as a big surprise, this recent news looks somewhat abrupt to come less than a week later. LG launched a new concept of roll-up phone at CES 2021.

However, according to information from Korea Herald, following Kwon’s post on the potential “big changes”, another LG official also explained that “with competition in the global mobile device market getting fiercer, it’s time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including the sale, withdrawal and downsizing of smartphones. ”

Fortunately, Kwon said that “Regardless of any change in the direction of smartphone operations, employment will be maintained, so there is no need to worry,” the Korea Herald reporting rumors that around 60% of the staff would be moved or reassigned to other divisions with LG.

Recently, while LG was able to reduce losses from its telephony division by outsourcing production of lower-cost devices to third-party manufacturers, LG’s mobile division was still suffering. Q3 2020 operating loss of $ 124.9 million.

In my opinion, LG Mobile’s difficulties stem from several ways. The first is that for years LG has tried to keep pace with its big Korean rival Samsung without having the same level of technology or sales needed to support and sustain the development of high-end phones. Additionally, LG’s phones have long had poor software and support, with efforts like its Software Upgrade Center having very little effect or benefit to end users. This often meant that newer versions of Android took months, or even years, to release to devices.

And while I really like more experimental phones like the LG Wing, it often felt like LG was spending more time throwing ideas at the wall than trying to create a bigger range of budget and mid-range devices to better compete with devices like Galaxy phones. Samsung’s more affordable A-series, which have been among the best-selling handsets in the world over the past two years.

In many ways, if LG is to save its smartphone business, it might make sense for LG to take a page off the Motorola and HMD / Nokia playbook by focusing on hardware and device design while upgrading to a larger version. Android stock. instead of LG custom skin. This would potentially allow LG to continue developing devices like its roll-up phone concept and release more mid-range devices, while leaving Google to handle more of the load when it comes to updates. software and OS.

Either way, while it’s still a bit too early to drop one for LG’s mobile division, it’s clear that big changes are coming.