LG Electronics may hang up on phone business
LG Electronics hinted it may abandon its struggling smartphone business Wednesday.
The company said in a statement that it “leaves open all possibilities to determine the future direction of its mobile communication [MC] division,” following media reports that it is attempting to sell its smartphone division.
LG acknowledged its struggle with phones in the face of stiff competition with Samsung and Apple at top-tier models and Huawei, Oppo and Xiaomi on the low end.
“LG Electronics' smartphone business is now at a stage where its competitiveness needs to be coldly and impartially judged. And we should make the best decision,” the company said.
CEO Kwon Bong-seok indicated in an email to employees that a significant change is on the horizon, writing, “Employment [at the mobile communication division] will be maintained no matter how the decision about operation and management of the MC business is decided.”
LG's smartphone division has posted losses for 23 consecutive quarters, which means it hasn't made a profit since the second quarter of 2015.
BY PARK EUN-JEE [firstname.lastname@example.org]