After 23 consecutive quarters of losses, is LG going to withdraw from the mobile phone industry?

Recently, there has been new news about LG's mobile business. According to foreign media reports, LG and Vingroup, a large private enterprise in Vietnam, discussed the acquisition of LG's mobile phone business in North America, but the two sides failed to reach a consensus, causing LG to consider withdrawing from the mobile phone business. Recently, Twitter user @FrontTron broke the news that LG will announce its withdrawal from the mobile phone market as early as next Monday (April 5), and will also explain the employee reorganization plan originally affiliated with the mobile phone business department. 

Based on the above factors, LG's new mobile phone launch plan in the first half of the year has been shelved, including the first roll-screen mobile phone LG Rollable, which may not enter the market. According to public information, LG's mobile business has suffered losses for 23 consecutive quarters from Q2 2015 to Q4 2020. As of Q4 last year, the department's cumulative losses amounted to 5 trillion won (about 29.3 billion yuan). Previously, LG Group announced that it would sell its China headquarters building to RECO Changan Private Ltd., a subsidiary of Singapore's government investment company, for 1.37 trillion won (about 8 billion yuan).

It is understood that LG Group's subsidiaries include LG Electronics, LG Display, LG Chem, LG Household & Health Care, etc. The group's business areas cover chemical energy, electronic appliances, communications and services, etc. LG Display has the support of Apple and has a place in the display market.

As early as January this year, there were rumors in the industry that LG would sell its mobile phone business. Industry insiders said that there are not many manufacturers in the Korean domestic market that can take over LG's mobile business, and there are not many manufacturers in the global market willing to swallow up LG's mobile phone business. It is estimated that it will be difficult for LG to find a suitable buyer.

As of press time, LG has not responded to the news.