LG may be looking to bow out of the smartphone game this year, according to a report published by The Korea Herald, with the CEO Kwon Bong-seok hinting that employees should expect major changes in the business category.
While the company has yet to make a decision, LG's phone business has struggled of late, losing USD$4.5 billion over the last five years.
"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," an LG official explained. "The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business."
LG has made a whole host of attempts to differentiate its smartphones in recent years, but none have had any significant cut through. These have included the modular LG G5 which featured removable components, the LG G8 with gestures for interacting with the phone without touching it, the LG V50 with a dual screen accessory, and most recently, the LG Wing swivel phone. The LG Wing was not made available in Australia.
LG's most recent phone to launch in Australia was the Velvet. The Velvet marked a change in direction for the manufacturer; instead of going toe-to-toe with Apple and Samsung flagships, it was a semi-premium offering at a sub-$1,000 price point. Yet despite some trimmings like water-resistance and wireless charging, we found it failed to stand out from the increasingly crowded competition in the upper midrange space.
If LG does end up abandoning the smartphone business, it could go out swinging. Earlier this year the manufacturer revealed a rollable device - the LG Rollable - that will reportedly be available later in 2021. As with foldable phones, the Rollable has a flexible display, but instead of unfolding, the screen can unfurl from smartphone size to tablet size.
Alex Choros
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