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LG to quiet the smartphone business due to a massive loss of $4.5 billion

Madison Klotz

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lg smartphone business

LG is going through a massive loss in Smartphone business; in result, the company might exit the smartphone business as the company has lost almost 5 trillion ($4.5 billion) with-in the last 5 years.

According to a report, the company CEO Kwon Bong-Seok has sent a memo to their smartphones segment staff. He mentioned that we are going to announce a significant change in smartphone manufacturing.

The company CEO said that,

“Since the Competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice”.

He also mentioned that regardless of these changes, the employment will be maintained, as there is no need to worry.

As rumours suggest, the company will move the smartphone segment staff forward to other business segments, and some of the team will be assigned to other LG affiliates.

In 2020, LG shipped 6.5 million phones, which decreased from 7.2 million. However, the company has brought some exciting and unique products to the market. The company recently revealed it’s two flagship phones, which are LG Velvet and LG Wing.

Besides all this, the company has introduced a new rollable smartphone at CES 2021. It was a clear sign that the company is still putting its efforts in innovative projects in the smartphone category. Unfortunately, due to this enormous loss in the past five years, they come to an end with the smartphone business.

Madison Klotz is Senior Editor at Techarim. She previously worked for Crunchbase News as Editor in Chief as well as The Next Web, TechCrunch, and Mattermark.

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