LG may be closer than ever to announcing its official exit from the smartphone business.
A report from The Korea Times indicates that the manufacturer will soon begin moving employees of its mobile communications team to other sectors of its business. Industry sources told the publication that LG is expected to make an announcement about the closing of its smartphone division at a board meeting on April 5.
“LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business,” the unnamed sources said.
Industry informant, FrontTron also recently said on Twitter that 4,000 LG Mobile Communication employees will be moved to other divisions, with many being assigned to the brand’s home appliance sector as early as next week.
The latest reports follow several rumors in the early year that LG had closing its smartphone sector in mind as one of many options for what to do with the flailing business.
In January, CEO Kwon Bong-Seok reassured LG employees that they would still have jobs no matter what direction the business took. He noted he was unable to uphold his promise that the mobile brand would see a profit by 2021. In February, LG passed on a buying offer from Vietnamese conglomerate, Vingroup.
FrontTron noted that LG’s showcase of its rollable display technology was an effort to increase the price of a potential sale, but it was not able to meet a substantial agreement with any buyers.
However, the company continues to play coy about its future plans for its mobile business, with Chief Financial Officer Bae Doo-yong saying once again that “all possibilities remain open,” The Korea Times reported.
LG has told several publications that it currently has no comment on the matter.
The brand’s smartphone business has not made a profit since 2015 despite its popularity in markets, including North America and Latin America, Android Authority noted.
However, certain parts of the smartphone business may continue on even if LG Mobile does shutter its doors. Development of the rollable display project may continue, even if a device is never made commercially available.
LG is also expected to continue updates for its products that remain in the viable software windows.
