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Tech knowledge #3

 LG on their way to quit smartphone business...



 So LG's mobile division has been facing losses after losses for a very long time now. To be specific, their mobile division has reported 23 consecutive quarters of losses, that's about 4.5 billion dollars(around 33 thousand crores) over the last 5 years and as a result of this, LG is now considering quitting the smartphone market for good in 2021. LG recently teased a rollable smartphone at CES (Consumer electronics show) a few days ago, clearly indicating that the company has not run out of great ideas for its smartphone business. Also recently one of their executives said that the rumors about them exiting the smartphone business are “completely false and without merit.” However, in a dramatic turn of events, Reuters has  found an internal memo from the CEO of LG that basically says that they are considering all options for its loss-making mobile division, which could include shutting its smartphone business or selling off parts of the unit. The CEO of LG said and I quote, “In the global market, competition in the mobile business including smartphones has gotten fiercer, LG Electronics believes we have reached the point where we need to make the best decision about our mobile phone business, considering current and future competitiveness" Another LG executive explained and I quote, “Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry" In other words, the senior executive aimed to ease the worries of the employees in the company’s smartphone unit, and assured them regarding their job security. He further said, "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 LG executive further said that “The company is considering all possible measures, including the sale, withdrawal, and downsizing of the smartphone business.” Also, the company released a statement to the Verge that nothing has been finalized as of now. Interestingly, Other companies are aware  of the situation and have started bidding for LG's lagging division, According to Ross Young,4 companies have already submitted bids for the LG smartphone business - 2 from the US,1 from Germany, and 1 from Vietnam. Other companies interested are Facebook, Google and BOE a display maker that supplied displays for LG Rollable smartphones. If LG chooses this path then the announcement is expected to happen in March. Now another possibility is rather than selling the entire mobile division, LG might only sell their flagship phone segment and stick to budget and mid-range handsets, that's according to a report from the Bell, a famous South Korean website. The flagship lineup includes the LG Wing, LG Velvet, and the recently announced LG Rollable too. So basically we can expect the company to either exit the smartphone market entirely or sell its business, with a representative stating that it might consider both. It's a shame that a company that was at the number 3 spot in 2013 behind Samsung and Apple is now thinking about selling their mobile division or at least part of their mobile division. LG is also planning
to shift their 60 percent of their staff to other businesses and i don't know what will happen for the remaining 40 percent staff, Do share yours views with me. With that said, let me know what do you think about this down in the comments . 

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