NEW DELHI: It appears that LG Electronics has decided to shut down its mobile communication business. Initially, the company was planning to sell the mobile business to Germany’s Volkswagen AG and Vietnam’s Vingroup JSC.
However, as reported by Bloomberg and a Korean publication DongA IIbo, LG Electronics decided to shut down the unit after the sale negotiations failed.
Earlier this year, The Korea Herald reported that LG is planning to exit the smartphone business in 2021 after losing about $4.5 billion over the past five years.
The report also added that the company will announce the final decision to its employees by April. As per the report, LG will try to redistribute the employees from its mobile division to the Household Appliances and Automotive divisions.
After this new report, it is quite clear that the company will not launch its upcoming smartphones. This means that they will not launch its Rainbow smartphone which is the successor to LG V60. It is also very unlikely that LG will now launch its rollable smartphone.
“LG Electronics’ CEO said in January that all options were on the table for the loss-making operation. The company was said to have halted development last month of phones with a rollable display, and DongA said Sunday that LG has shelved a planned first-half rollout of all new smartphones,” mentions the report.