Rumor: LG may announce exit from the cellphone market next week

Information from a new newspaper report The Korea Times, who cites strong sources from within the industry, says that next week the LG will communicate its exit from the smartphone market.

It is not just today that the South Korean company has problems with the mobile device sector. It has been operating on net loss for about 6 years. One hour the executives need to stop the bleeding. At the beginning of the year, the company already signaled its intention abandon or cell phone market. And in fact even tried to sell the mobile division, but without success.

According to the report released by the The Korea Times, next Monday (5) the LG board will decide the final destination of the mobile devices division. And the official announcement will still be made on the same day. Curious to think that until last week the company was still looking for buyers for the mobile division. Things really must be very bad for anyone to want to take a risk and invest the money in the company.

Directors, officers and directors must meet to decide the fate of LG’s mobile division

A representative from LG Electronics said that the company is still considering other solutions that do not involve the complete abandonment of the sector. The most interesting way out for South Koreans would be to sell all or part of the business.

In addition, rumors are already circulating on Twitter that LG will relocate the 4,000 employees of the mobile division to the home appliance and other consumer products sector. This is another great indication that the end of the LG mobile division is really near.

According to the source heard by the The Korea Times, the LG announcement should also imply that this will not be a definitive exit and that the company may still launch new phones in the future. In addition, support for models still online will continue to receive software updates.

LG phones should continue to receive updates

But I, in particular, find it unlikely to happen. If with the mobile division still in existence LG is slow to release security updates, imagine when to extinguish the smartphone sector.

It is important to note, however, that all of this information is classified as rumors. LG has not yet officially positioned itself on the possible end of its smartphone division. We only have to wait until Monday to see if we will have any more concrete positions.

Source: The Korea Times via Android Authority


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