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Loss of 29 billion in five years: LG Electronics may close its smartphone business

via:驱动之家     time:2021/3/23 2:40:27     readed:188

According to foreign media reports,LG Electronics may close its smartphone business instead of selling it.

It is reported that,LG mobile business has suffered losses for 23 consecutive quarters since the second quarter of 2015. As of the fourth quarter of last year, the accumulated loss of the Department reached 5 trillion won (about 29.3 billion yuan), and its business has not recovered in the past year.

In January last year, Quan Bangxi, CEO of LG Electronics, said publicly that,For loss making businesses, the company has considered all options.

However, LG has never officially confirmed the rumor that it has been shutting down its mobile phone business. Previously, Jo Seong Jin, vice chairman and CEO of LG, said that LG's business portfolio includes automobiles and home appliances, both of which are related to smartphones, so we did not consider quitting the smartphone business.

Some people in the industry believe that LG mobile is actively laying out 5g and foldable smart phones, hoping to reverse the dilemma.

However, according to the East Asia daily on Sunday,LG has shelved plans to launch all its new smartphones in the first half of the year and will share its decision on the fate of the business with employees as soon as early April.

In 2018, LG mobile officially announced its withdrawal from the Chinese market and cancelled the high-end series. According to media reports, in the two years before this, LG mobile phone had disappeared in the Chinese market, and the reason behind it was that LG mobile phone had suffered heavy losses at that time.

According to the annual financial report of 2017 released by LG, the annual profit and revenue of LG Electronics have increased by a large margin, but these increases are mainly driven by the business of other departments, while the mobile sector of LG, where the mobile phone part is located, has suffered a very serious loss.

According to the financial report, LG's annual mobile phone sales in 2017 were 13.9 million units, which continued to decline by about 1% compared with the total in 2016. In the fourth quarter, the loss of its mobile sector reached 190 million US dollars, and then increased year by year.

By 2020, LG mobile phones will not show any signs of recovery. According to counterpoint,In the third quarter of 2020, LG's mobile phone shipment was 6.5 million, lower than 7.2 million in the same period of 2019, accounting for only 2% of the global mobile phone market. Samsung's mobile phone shipment in the same period was nearly 80 million, 12 times that of LG.

It is worth mentioning that,As early as 2019, LG has already outsourced the medium and low-end mobile phones, indicating that it has the idea of giving up the mobile phone business, but it can not find a suitable buyer.

LG has withdrawn from the Chinese mainland mobile phone market and lost its chance to rise. In terms of overseas market, LG mobile phone is not as good as Samsung, apple and other competitive products in North America. Domestic mobile phone brands such as Xiaomi, oppo and vivo are also developing rapidly in overseas market.

According to the second quarter data released by counterpoint in 2019, LG's decline has reached 18.5%, far behind most mobile phone brands.



LG ElectronicsIntelligent mobile phone

Link to the original text:Lei Feng net

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