That's it, LG Electronics could close the activities related to the world of smartphones. Fortunately, however, not those relating to the production of screens. This at least is what has been reported by eminent Korean sources. A news that is unbelievable after what we saw yesterday so Xiaomi has been banned by the Trump administration on charges of being controlled by the Chinese army. A big change that must have been considered by the company, however. Obviously there are problems and not a few. But let's go see the details of the news.
UPDATE - FIND THE DETAILS AT THE END OF THE ARTICLE
LG will leave the smartphone business: the announcement of the Korean company is expected towards the end of the month. But what is the cause of this important change?
According to a Korean reporter on the website The Elec, LG Electronics should close the smartphone production business at the end of the month. The reason is linked to the suffering of the company, which has been in deficit for years. On January 15 it was confirmed that the Korean company sent a message to its employees announcing the completion of the works within this month. The set date would be 26st January.
Earlier this week, the giant instructed the work group to shut down the entire production line except "of the project". This project clearly refers to the rollable smartphone that was recently seen during CES 2021. Rumors have been circulating within the Mobile Communication organization for a few days but the news only arrived today. We learn that the situation is moving with extreme urgency and therefore the employees are quite confused.
However it is also said that there is a possibility that some sales activities may remain standing, through the production in Latin America and North America. It is learned that the division that deals with the business of smartphones has registered a deficit for 23 successive quarters until the fourth quarter of last year. The number of employees also continued to decline. The number of executives in the same division went from 7460 in 2015 to 3724 in 2020.
Earlier last month LG Electronics has closed key departments such as pre-development, sales and production.
SECURITY UPDATE TRAINING
It seems that The Elec has promptly removed the article to which we refer. Consequently we are led to think that the news is not reliable. We await further news.
UPDATE 2
As reported by Android Police, no danger for the end of the work by LG.
UPDATE 3
Maybe it wasn't all fake. According to what was stated by KoreaHerald just today, the company could really stop making smartphones. What was just a rumor has occurred something more concrete than we think. After days of the first news, it seems that it came out there letter that CEO Kwon Bong-seok sent to employees which reads:
As competition in the global mobile device market is becoming fiercer, it is time for LG to make a cool judgment and the best choice. The company is considering all possible measures, including the sale, retirement and downsizing of the smartphone business.
Kwon Bong-seok, CEO of LG
