Have you heard of the new LG phone? Well, neither have I. And we aren’t gonna hear about it for a very, very long time.
That’s because as of yesterday (5 Apr), the Korean brand has left the industry for smartphones, according to Mothership.
In their press release, the conglomerate framed the exit as “a strategic decision” to avoid expending unnecessary resources on the competitive industry and to redirect them to “growth areas”, which are expected to bring in better profit.
These areas will include electric vehicle components, artificial intelligence, and smart home devices, among others.
For those of us who are LG fans, or nostalgic from the times when we owned LG flip phones, the existing lineup of phones from the brand will still be on sale. Service support and software updates will also remain available for “a period of time which will vary by region”.
LG has also ominously announced “details related to employment will be determined at the local level”, potentially foreshadowing retrenchments as its smartphone business shuts down.
About 60% of the staff, however, may be reassigned to other parts of the company, according to rumours reported by The Korea Herald.
The announcement may be related to reports of tremendous losses LG suffered over the past five years, amounting up to ₩5 trillion, or about S$6 billion.
Guess we can’t say LG won in its smartphones business.
Egg Rolls? How About Phone Rolls?
The announcement shocked observers, in particular because LG had just demonstrated an eye-catching prototype phone at the Consumer Electronics Show earlier this year, according to Tom’s Guide.
The phone, dubbed as “rollable”, is equipped with a 6.8-inch display that extends from the side when needed, transforming the phone into a tablet-like device. There is also a secondary screen at the back together with the camera assembly.
Where does the phone case go?
Good question. Let’s just hope whoever uses it has very steady hands. Oh wait, no one will—LG had promised to release the phone in early 2021, but evidently, that is no longer happening.
It hasn’t been on a roll lately.
More Surprise Exits Might Be Coming
Surprising as it may be, LG might not be the only one leaving the smartphone industry.
Following extensive sanctions, the Chinese telecommunications equipment maker Huawei has been reported to be in talks of selling its smartphone business, according to an investigation by Reuters.
The update came after the U.S. imposed sanctions that precluded access to integral phone components like processor chips, making continued operations in the phone business far too challenging. Huawei, however, has denied any plans to divest its smartphones business, and there are no official signs
Huawei or Huawon’t? We’ll have to find out.
Feature Image: lentamart / Shutterstock.com
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