LG is exploring options that include scrapping the smartphone business

Despite the recent creation of its new roll up phone technology and capture its fair share of buzz in 2021 Consumer electronics fair, LG may consider withdrawing from smartphone gaming altogether, according to a report by The Korea Herald on Wednesday. The tech giant faces stiff competition from other manufacturers as it seeks to balance a loss of $ 4.5 billion over the past five years.

LG CEO Kwon Bong-seok reportedly sent a note to employees on Wednesday, informing them that he was considering a range of options for the company’s smartphone division, which could include a sale.

“Regardless of any change in the direction of the smartphone business activity, employment will be maintained, so there is no need to worry,” Bong-seok reportedly said.

LG was part of the mix of top Android gamers in the early days of the modern smartphone era, building on its success during the candy bar and flip phone era. But as bigger conglomerates like Samsung and Huawei took more stakes and upstarts like OnePlus began to attract die-hard enthusiasts, companies like LG were increasingly left out, especially in the premium phone market where the iPhone and Galaxy S family has long dominated.

After years of experimenting with gadgets like a option for modular rooms or a leather backing, LG’s line of flagship phones over the past three years have been largely conservative, offering high-end specs and an indescribable look at a moderate price. This has changed in recent months with the LG Wing dual swivel screen, launched in the fall, and the Rollable unveiled at CES. However, the buzz of these phones hasn’t changed the reality that the company has faced significant financial headwinds over the past few years.

“As the competition in the global mobile device market becomes increasingly fierce, it is time for LG to make a cold judgment and the best choice,” an LG official told the Korea Herald. “The company is considering all possible measures, including the sale, withdrawal and downsizing of smartphones.”

An LG spokesperson confirmed the memo to CNET, noting that the company was exploring various options. “Currently nothing has been finalized and to comment further would be only speculation,” LG spokesman Ken Hong said.