LG to close phone business instead of selling it – report

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LG has been unable to find a buyer for its phone division, a report says.

The company is putting on hold the launch of its smartphone lineup for this year, including the LG Rollable revealed at the Consumer Electronics Show earlier this January.

According to the site's sources, LG held talks with Vietnam's Vin Group, and German automaker Volkswagen to sell the company's mobile communications business division, but no acquisition materialized.started in January, when a memo from LG CEO Brian Kwon leaked, saying that they"are reviewing directions of the mobile communication division, opening the door for all options." LG reportedly only has around 1% of the global market share, making it hard to find a buyer.

Counterpoint Research in its most recent report , has Apple leading global market share at 21%, Samsung at 16%, Xiaomi at 11%, OPPO at 9%, and Huawei and Vivo both at 8%. Donga also reported that the mobile division has been operating at a loss for 5 straight years, with a cumulative deficit of $4.4 billion but LG held on due to the importance of the smartphone market. LG Electronics reported revenues of $56.45 billion and profits of $2.85 billion in 2020.

 

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