LG announced that it is considering exiting the smart phone market in 2021, after the loss suffered by the company over the last five years in the smart phone sector and its loss was estimated at about 4.5 billion US dollars, and the South Korean company is struggling to compete strongly with competitors.
According to a report published by the Korea Herald newspaper, the company’s CEO, Kwon Bong, sent an internal memo to employees last Wednesday, indicating that the company is about to make major changes in the smartphone sector and that their options may include withdrawing from the market.
A LG official said in a statement to the Korean newspaper: “Given that competition in the global market for mobile devices is getting fierce, it is time for the company to take the best position and choice, and the company is studying all possible options, including selling, withdrawing, or reducing the business of the smart phone sector.”
LG confirmed the authenticity of what was stated in the internal memorandum in a statement to the technical site “theverge”, indicating that it has not yet issued its final decision and is committed to taking the necessary measures to solve the dilemma of loss in its affected sector during the current year 2021.
It is worth noting that the LG memo came after a previous Korean report dating back to the beginning of this month, referring to the company’s plan to end the phone sector permanently, and the company described this report as “completely wrong and unfounded.”