NEW DELHI: It is now almost confirmed that LG might exit the smartphone market next week. The company has been operating a net loss for the past six years and it is quite likely that LG will shut down its mobile division.
A new online report by The Korea Times reports that LG will confirm its exit from the smartphone market early next week.
Citing industry sources, the report revealed that the South Korean tech giant will make the official announcement on April 5 after the board meeting.
Initially, the company was planning to sell the mobile business to Germany's Volkswagen AG and Vietnam’s Vingroup JSC. LG Electronics decided to shut down the unit after the sale negotiations failed.
On the other hand, Tron, an industry insider, revealed that LG's exit from the smartphone market could also mean that the company will discontinue all software updates for existing phones.
In a series of tweets, Tron said that the employees of LG's mobile division will be assigned to the Changwon home appliance factory next week.
So, this means that if you own an LG Wing, Velvet or any other smartphone of the company, then there are chances that you will not receive any future software updates.
Earlier this year, The Korea Herald reported that LG is planning to exit the smartphone business in 2021 after losing about $4.5 billion over the past five years.
LG Electronics’ CEO said in January that all options were on the table for the loss-making operation. The company was said to have halted development last month of phones with a rollable display.
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