LG plans to withdraw from smartphone business, stops iPhone LCD production



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LG plans to exit the smartphone business altogether amid the drop in shipments and accumulated losses of $ 4.5 billion over the past five years (via The Korea Herald).

lg wing

LG CEO Kwon Bong-Seok warned staff earlier today that the company is reassessing its presence in the smartphone industry:

As the competition in the global mobile device market is increasingly fierce, it is 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.

He added that regardless of any changes, the company will retain its current employees in the smartphone division and reassign them elsewhere.

LG has seen a rapid decline in smartphone shipments in recent years, and the company is believed to have a market share of just 2%. LG has run large financial deficits in its smartphone segment for 23 consecutive quarters, reaching a total loss of $ 4.5 billion.

Upon taking office as CEO in January 2020, Kwon pledged to turn around the company’s smartphone business. The latest comments from the CEO therefore seem to be an admission of non-profitability of the segment.

At the same time, LG would end its production of iPhone LCD screens, according to Elec. LG Display had previously attempted to supply LCD screens for the second generation iPhone SE, but failed to meet Apple’s requirements, which led to the selection of Japan Display and Sharp as suppliers. LG’s factory that previously made the components will be reused to make automotive display panels.

Earlier this month, LG unveiled one of the world’s first roll-up smartphones at CES, as the company scrambled to explore unusual designs to entice customers. The future of this device, and other LG smartphones such as the LG Velvet and LG Wing, is now very uncertain.

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