LG could well get rid of its smartphone division, needs success. According to Business Korea newspaper, the brand could sell it to a Vietnamese group: VinGroup. At the moment, nothing has been done yet, but such an operation would be a small earthquake in the mobile world.
LG’s smartphone division is struggling to convince. Although the Korean manufacturer is trying to innovate with original formats and attractive products, nothing helps. For all these reasons, it could definitely abandon the world of mobility, according to the latest leaks.
On January 20, the very serious Yonhap News reported that LG was considering getting rid of its mobile division. The site was based on an internal memo, but for now, nothing is official. Business Kora adds a layer today, indicating that LG would caress the idea of selling it to a Vietnamese group: VinGroup.
VinGroup is not new to the world of telephony, as the group already designs and manufactures LG-labeled smartphones in the Original Design Manufacturer (ODM). The know-how will always be there, even if the latest innovations of the Korean brand will logically no longer be part of the game. A case in point that reminds HMD Global, which still designs Nokia-branded products.
Unrelenting difficulties
LG is experiencing major financial difficulties in the mobile segment. As The Next Web points out, it’s been 23 quarters, almost six years, that the manufacturer has not made money with its smartphones. Since 2015, more than 3.7 billion euros have been lost.
The brand has not been able to renew itself over the years and has especially suffered fierce competition from Chinese smartphones,cheaper and more efficient in the entry and mid-range segment. Today, LG is not even in the top 10 of smartphone manufacturers, up from the top three in 2015.
At CES, however, LG continued to surprise, presenting for example a smartphone with a steamscreen. A few months ago, it was the Wing, a phone with two screens including a swivel, that had intrigued many. At this time, LG has not commented on the sale rumors.
Source: The Next Web
