LG is looking to close the smartphone business after not finding a buyer

LG is trying to close its entire smartphone division after finding a buyer for the section of its business, which is in trouble. Korea Herald.

In January, LG announced it was considering options to exit the smartphone industry, “including selling, withdrawing and downsizing.” While LG was the third-largest smartphone maker in the world and a major competitor to Apple in the industry, the company’s smartphone business has seen shipments decline and accumulated losses of 4.5 billion of dollars in the last five years, which has led to the need to re-evaluate the division.

LG reportedly started talks with Vingroup and Vietnam-based automaker Volkswagen over the company’s purchase of the company’s smartphones, but negotiations did not lead to an agreement. Although the decision has not yet been confirmed, industry experts report that LG is likely to close its smartphone business instead of selling it. A source who talks to the Korea Herald explained:

According to reports, LG held talks with other people about selling the unit, but apparently, they did not make much progress in their negotiations. It seems that the sale of the entire mobile business seems difficult at the moment, as well as the partial sale of the unit.

With LG’s internal restructuring plan coming to a close and no buyers found, the company is said to be opting to reduce its losses by completely shutting down its smartphone division.

LG’s recently announced smartphone projects, such as “Rainbow” and “Rollable,” are believed to have been phased out as the company wants to use its existing mobile workforce elsewhere in the business, such as now the vehicle component solutions division.

LG is expected to announce the decision on its smartphone business unit next month after a board meeting.