LG to quit smartphone market

LG is reportedly is said to be considering all means from a potential sale to downsizing to taking back its footprint from the competitive smartphone segment.

It is also said to be relocating 60 per cent of its staff in the smartphone segment to other business units within the company affiliates. Nothing has been decided for the remaining 40 per cent of the employees but regardless of all the changes, LG has made clear that their employment with the company will be retained.

It is said that LG CEO Kwon Bong-Seok has informed all the employees by way of a email about its intentions of shutting down the smartphone segment owing to huge losses.

Till recently, the company has incurred losses mounting to about $4.5 billion (roughly Rs. 32856 crores) in the last five years in the smartphone market making LG take a ‘cold judgement’ said an official.

LG faces fierce competition in its home from Samsung, also a Korean electronics brand in the smartphone business along with several newcomers from China be it Xiaomi, OnePlus, Oppo or Vivo.