The well-known brand LG Electronics, for years one of the leaders in IT and home appliances products, is considering the idea of ceasing the production of smartphones and products dedicated to mobile telephony. The confirmations come from CEO in the person of the South Korean multinational, Kwon Bong-seok, which in the last few hours would have sent a message to its employees in the mobile sector, communicating that there will soon be substantial changes regarding the production and distribution of smartphones. Today also, according to some analyzes by The Korean Herald newspaper, it is estimated that the company over the past 5 years it has lost more than $ 4.5 billion. Despite this very drastic stance, however, Bong-seok confirmed that in any case there will be no layoffs and that their employees do not need to worry.
As the competition in the global mobile device market is getting more and more aggressive, I think it is time for LG Electronics to make a very tough but wise choice. Our company is considering every possible measure, including the sale, withdrawal or reduction of its smartphone business.
Despite their own panel during CES 2021 in which a lockable phone, according to some fairly credible rumors there will be a official announcement from LG Electronics next Tuesday. This is not the first time that the multinational is subject to this type of rumor, given that already in 2019 there was a rumor - which later turned out to be true - of a large cuts in funds destined for the production of medium-low cost mobile phones. At the moment LG continues to deny these rumors, explaining how there actually was one cost shifting towards a much more careful production of high quality products, to the detriment of the units that closed the last fiscal year in negative.
