LG, considering the exit from Smartphone Business, stops the production of LCD for iPhone

LG plans to give up smartphone business amid declining deliveries and $ 4.5 billion in losses over the past five years The Korea Herald).

LG CEO Kwon Bong-Seok warned employees earlier today that the company is reevaluating its presence in the smartphone industry:

As competition in the global mobile device market becomes fiercer, it’s time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including the sale, withdrawal and reduction of the smartphone business.

He added that, regardless of any change, the company will keep its current employees in the smartphone division and reassign them elsewhere.

LG has seen a rapid decline in smartphone deliveries in recent years, and it is now believed that the company has a market share of only two percent. LG has seen major financial shortfalls in its smartphone segment for 23 consecutive quarters, reaching a total loss of $ 4.5 billion.

When he took over as CEO in January 2020, Kwon pledged to return to the company’s smartphone business. Therefore, the CEO’s latest comments seem to be a recognition of the failure to make the segment profitable.

At the same time, LG is ending production of LCD displays for the iPhone, accordingly Elecul. LG Display previously tried to supply LCDs for the second-generation iPhone SE, but did not meet Apple’s requirements, which led to Japan Display and Sharp being selected as suppliers instead. The LG factory that previously made the components will be reconfigured to produce car display panels.

Earlier this month, LG unveiled at CES one of the world’s first mobile smartphones, as the company struggled to explore unusual models to attract customers. The future of this device and other LG smartphones, such as LG Velvet and LG Wing, are now extremely uncertain.