There have been numerous reports that LG Electronics will sell its smartphone business. However, there are also reports debunking this claim. Presently, there are conflicting reports regarding the survival of LG’s smartphone business. The latest report in this regard claims that LG Electronics may close its smartphone business instead of selling it.
According to reports, negotiations with German Volkswagen and Vietnam Vingroup JSC on the possible sale of the smartphone business appear to have failed. In other words, LG did not find a suitable next home to take over its own mobile phone business. Thus, it appears that the company will rather choose to close it than sell it.
Previously, LG Electronics CEO, Quan Bangxi, said in January that the company had considered all options for a loss-making business. LG said, “In the global market, competition in mobile services (including smartphones) is getting fiercer. We are now open to all possibilities and are thoroughly reviewing our future plans”. According to reports, LG has shelved plans to launch all new smartphones in the first half of the year.
LG may share its decision on the fate of the business with employees as early as April. In the past, LG also reorganized its mobile phone business. In 2019, LG outsourced the production of its mid-and low-end smartphone business. It has given up on the mobile phone business, but could not find a suitable buyer to take over. However, in 2021, the market structure has undergone some changes, but LG’s mobile phone business has not recovered.
The competition in the smartphone market is very high and only the tough survive. The Chinese smartphone market is even more competitive and the company has since quite this market. The South Korean manufacturer has been struggling in the smartphone market for a long time. Its smartphones seem to be overpriced and this is affecting its sales.
LG still releases update for its smartphones
Despite the problems with the company, it is still trying its best to take care of its existing smartphones. Recently, the company released a list of smartphones that will get the Android 11 update.
The report shows that the Velvet 5G will get the Android 11 update in April while the G8X will get it in May or Q2 2021. In the third quarter of 2021, the Velvet 4G, as well as the G8S, will get the update. However, it is in the fourth quarter that the LG Wing, K52, and K42 will get this update.