LG leaves ‘all possibilities open’ for the mobile unit

by



[ad_1]

LG Wing Standing Right Closed

Credit: David Imel / Android Authority

  • LG has confirmed a note to employees on the future of the mobile division.
  • The memo reportedly claimed that “all possibilities are open” for the unit.
  • Another outlet claimed that a Vietnamese company was interested in LG’s North American business.

The past five or so years have not been a good one for LG, as the company has experienced a long string of loss-making quarters and lost market share to competing manufacturers. Now it looks like the company is considering some drastic action.

According to ZDNet Korea and the country Yonhap news , LG Electronics CEO Bong-Seok Kwon sent an email to employees saying “all possibilities are open” for the future of the smartphone industry.

“LG Electronics has come to the point where it is time to make the best choice by calmly judging its current and future competitiveness in the mobile phone industry. Currently, all possibilities are open and the direction of commercial operations is being carefully reviewed, ”said the CEO as quoted by the media. He would have added that “in principle”, the members of the division will always be employed whatever the result.

An LG spokesperson confirmed to Android Authority that an email was sent to the employees, but clarified that there was no mention of a sale or termination:

The internal memo was simply intended to respond (mainly) to local Korean rumors by letting employees know that nothing had yet been decided on the future of our mobile business but management was keeping an open mind. In summary, he said, “LG ​​Electronics management is committed to making all the decisions necessary to resolve its mobile business challenges in 2021. To date, nothing has been finalized.

However, Korea Pim News reports that Vietnam’s VinGroup – the parent company of nascent smartphone brand VinSmart – is interested in acquiring LG’s North American smartphone business.

LG’s smartphone sales network, after-sales support center, employees at the R&D center and the Latin American production plant owned by the US company are believed to be the main acquisition targets in the event Okay.

North America is LG’s most popular market, with the company ranking third in the United States with 13% market share in Q3 2020. So any company taking over the North American business would theoretically have a strong position in the region from the start. .

Please wait.. Loading the survey

VinSmart in particular is virtually unheard of outside Vietnam, but the company has joined ZTE to be among the first to offer phones with underscreen selfie cameras. Specifically, the VSmart Aris Pro packs a 20MP camera under the display.

Do you think LG should sell its smartphone business? Take our poll further up the page or leave a comment below!

[ad_2]

Source link