LG has consistently released some of the best-reviewed Android phones year after year. However, just because a phone receives positive reviews doesn't necessarily mean that it will generate enormous profits for the company.
That may be what's happening with LG, as there are many reports out there that the company is planning to ditch its smartphone business. It would be a shame to see LG drop out of the business, especially when it just teased its upcoming rollable smartphone at CES 2021 and released the Wing recently.
Is LG Departing the Smartphone Business?
What started as a rumor from a Korean publication called The Elec has since snowballed out of control. LG’s Head of Global Corporate Communications, Ken Hong, told XDA Developers that the rumor was "definitely untrue."
That seemed to be the end of things, but then reports came out from a slew of other Korean publications that the company told employees that it would be leaving the smartphone business through a memo. Publications such as The Bell and New Daily reported the departure, giving it more credence.
From there, The Korea Herald reported that a memo went out to LG employees that read as follows:
Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry.
Additionally, an unnamed LG employee told The Korea Herald the following:
Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including sale, withdrawal, and downsizing of the smartphone business.
Once the memo got out, LG confirmed to The Verge that the memo was legitimate but that nothing is finalized as far as its future goes. The fact that the company is thinking about leaving is big news, as we don't see significant players depart the smartphone space too often.
Apparently, LG wouldn't just drop smartphones, though. Instead, News Pim reported that a Vietnamese firm called VinGroup looks to be interested in buying its smartphone business.
The Future is Uncertain
The smartphone world will undoubtedly miss LG if it chooses to sell its smartphone business. While the company hasn't released the most popular phones in recent years, it has been a leader in innovation with devices like the LG Wing and the upcoming rollable phone.
Hopefully, the firm that decides to take over LG's business keeps working on those devices because they're quite intriguing.
