LG Electronics said Tuesday it plans to produce home appliances from its smartphone manufacturing line in northern Vietnam, as the company earlier decided to fully withdraw from the mobile business.
The vultures are circling as LG Electronics calls it quits in the smartphone market, its 10 percent domestic share available for the taking.
LG Electronics’ exit from the money-bleeding smartphone business will immediately stanch trillions of won in losses and allow reallocation of corporate funding to more profitable sectors.
LG Electronics announced it will officially shut down its smartphone business, after 25 years of operation. The company’s board of directors passed a vote Monday to halt its mobile communications division from July 31.
With LG Electronics still yet to announce what it plans to do with its money-losing smartphone business, rumors are circulating that it may choose to completely shut it down rather than sell it.
LG Electronics appears to have stopped its experimentation with unusual smartphone form factors, as it has reportedly suspended the development of its highly-anticipated rollable smartphone.
Ensuring job security is LG Electronics' first priority in reconsidering its long-struggling smartphone business. The company is also reviewing ways to "internalize LG’s mobile assets with other future-oriented businesses."
Market insiders are mapping out different scenarios for how LG Electronics could restructure its struggling smartphone business after the company admitted Wednesday that it did need to rethink the loss-making division.
The rumor mill was vindicated Wednesday when LG Electronics admitted what was obvious to many: It may have to quit its money-losing phone business.
LG Electronics hinted it may abandon its struggling smartphone business Wednesday.