It has been a while since LG’s smartphone division has been going through bad times, failing to achieve a good profit margin. Therefore, the South Korean manufacturer has reformulated its mobile operations twice, with the most recent reorganization dating from December 2020. The idea would be to focus on more premium devices, such as the curious LG Wing, while more basic devices, such as the LG line. K, would be outsourced.
Everything indicates, however, that the strategy did not work and the company’s mobile division was about to close. Reports Bloomberg pointed to an official announcement in April, and now a new rumor reinforces that possibility. The leaker Tron published on its Twitter this week that LG would officially close its operations in the smartphone market as early as next Monday, April 5th.
Tron it also gives some interesting details, such as the fact that the LG Rollable, a prototype device with a screen that could be rolled up, was being developed to increase the sale value of the division. Still, the manufacturer and its prospective buyers would not have reached an agreement, which made the transaction incomplete as “market cancellation”.
Still according to Tron, despite LG’s promises, smartphones already launched should no longer receive software updates, leaving users of the brand without any support. The closure of LG Mobile will affect about 4,000 employees, who will be relocated from the company’s smartphone operations to the factory focused on smart devices for the home in the city of Changwon, South Korea.
Android 11 timeline and Brazilian factory
The leaker’s information is reinforced when we look at some of the news that has circulated in recent months. Software support is an example: LG had released an official update schedule for Android 11 for some of its devices, but the dates announced by the manufacturer were discouraging. Most of the devices, including the most recent Wing, were expected to receive the new version of the system only in the third quarter of 2021, when it would no longer be that new, considering that Android 12 should be launched in August.
Another point related to the rumor is the negotiation of the sale of factories, which even included the factory unit of LG Brasil, in the city of Taubaté, in São Paulo. In the face of disagreements over the sale price, negotiated with the Vietnamese Vingroup, the South Korean would have given up on the transaction and started the transition from factories to the production of devices from other divisions.
LG Update:— Tron ❂ (@FrontTron) March 29, 2021
Remaining employees in the LG MC division will be assigned to the Changwon home appliance factory next week
This is the procedure of dismantling the entire 4,000 employees of the LG phone division.
Rollable was an unfinished model used to increase the ... (1/3) https://t.co/xoQdt7iFL5
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