The company is reviewing what to do with the smartphone business unit.
LG Electronics is still wondering what to do with its money-losing mobile business. At least, this is what industry insiders told the Korea Herald this week. Meanwhile, there are rumors flying that the South Korean tech giant may shut down the unit instead of selling it.
LG’s mobile business has been losing money since the second quarter of 2015. Its accumulated operating losses reached almost $4.4 billion in 2020. Analysts have predicted that LG will either shut down or sell its mobile business or scale it back.
“LG reportedly had talks with others over the sale of the unit but apparently there was not much progress in their negotiations,” an official in the mobile industry said on condition of anonymity. “It seems that selling its entire mobile business appears to be difficult at this moment, as is the partial sale of the unit.”
Talks with potential buyers have been inconclusive
The company was reported to be in negotiations with Vingroup of Vietnam and Volkswagen of Germany. However, the talks failed to result in anything tangible, according to industry observers.
Industry trackers are now speculating that LG favors closing the mobile unit, according to the Herald article.
They said workers at the mobile business are likely to be shifted to other units in the company. For example they could go to the vehicle component solutions division. This is where LG is trying to tool up for future growth.
LG is best known for its home appliance products. They will reveal their decision for the mobile business unit next month after a board meeting, according to officials.