LG Reportedly Fails To Find Buyer For Ailing Smartphone Division, Plans Full Exit
It was also reported that LG was looking to sell its entire smartphone division, which has been a money loser for the past six years. Potential suitors allegedly included Vingroup JSC and, surprisingly, Volkswagen AG. However, the latest news coming from South Korea signals that no one seems to be interested in acquiring LG's smartphone business. As a result, the company is expected to pull the plug and exit the booming market completely.
"LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business," said an industry source speaking with The Korea Times. LG is being coy now about its business prospects, with one official telling the publication, "All we can say is that every possibility is open. Although we cannot confirm that right now, we will announce the specific direction of our mobile communications business."
Exiting the smartphone business wouldn't significantly impact LG's business, as its other units like appliances and televisions are performing well, increasingly so due to COVID-19.
With that said, it would be sad to see a veteran OEM like LG exit the smartphone market, as it will likely just further fuel the dominant player in the Android sector: Samsung. Samsung is the "other" smartphone manufacturer from South Korea and has long overshadowed LG in both sales and marketing power.
LG's most recent consumer release was its Wing smartphone, a member of its Explorer Project series. The Wing is quite unlike any other smartphone on the market, with a rotating 6.8-inch P-OLED display that reveals a 3.9-inch OLED display below it. Although the phone is a bit gimmicky, we found its dual displays and performance respectable and you just can't dismiss that wow factor of the swiveling screen. You can read the HotHardware review of the LG Wing here.