Recent report from the Electronic giant is of the fact that LG may not be making phones for much longer.
Based on a new report from The Korea Herald, LG Electronics is looking at dropping its smartphone business which is backup with the CEO Kwon Bong-seok current message sent to staff hinting them that there will be a major change to the company’s smartphone plans which is coming now because of the challenges ahead.
Based on Business Analysis saying that the Electronic Giant (LG) which has some die-hard fans, the move would make business sense considering the state of its smartphone lineup.
Financial report from the company analysis states that LG’s smartphone division has lost around $4.5 billion over the past five years and these was support by quoting the CEO in his own words saying
“Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry,” said Kwon in his message.
Although report from an unnamed LG official saying that “since the competition in the global market for mobile devices is getting fiercer and smaller day in day out, it is about time for LG to make a cold judgment and the best choice which the company is considering all possible measures, including sale, withdrawal, and downsizing of the smartphone business.”
Based on the above review it was stated that around 60% of LG’s smartphone business staff will be moved to other areas within the company. It was also unclear if the remaining 40% of the staff will be retained and willing to work for a much smaller LG smartphone business or be let go, however, considering Kwon’s statement, the former seems more likely.
Market analysis never out ruled the fact that LG has a few big fans, LG phones have generally failed to live up to expectations in the current times.
Industrial phone and market rating shows that LG phones are rarely considered the best option among their peers, and when they are, it’s usually for a niche audience, like those who want support for accessories like the Dual Screen.
Result shows that the company has also lagged behind the competition in developing its camera tech which the board see a major affecting the company and the profit position of the firm.
History have it that the CEO Kwon became CEO of LG in January 2020 with his major speak centering vowing to turn its smartphone business around by 2021.
It was also noted that in last year December when the electronic giant told the world that it would be outsourcing design and construction of some of its low-end phones to third-party manufacturers which they believed in.
Although with the above statement it does mean that LG isn’t working on innovations that could change the smartphone business and also compete with other global brand