LG Looking to Shut Down Smartphone Business After Failing to Find a Buyer

LG is looking to close down its entire smartphone division after failing to find a buyer for the ailing section of its business, according to the Korea Herald.

LG Rollable
In January, LG announced that it was considering options for an exit from the smartphone industry, "including sale, withdrawal and downsizing." Though LG was once the world's third-largest smartphone maker and a sizeable competitor to Apple in the industry, the company's smartphone business has seen declining shipments and accrued losses of $4.5 billion over the past five years, leading to the need for an urgent re-evaluation of the division.

LG reportedly entered talks with Vietnam's Vingroup and automaker Volkswagen about purchasing the company's smartphone business, but negotiations did not lead to an agreement. Although the decision has yet to be confirmed, industry insiders report that LG is now likely to shut down its smartphone business instead of selling it. A source speaking to the Korea Herald explained:

LG reportedly had talks with others over the sale of the unit but apparently there was not much progress in their negotiations. It seems that selling its entire mobile business appears to be difficult at this moment, as is the partial sale of the unit.

With LG's internal restructuring plan now reaching its conclusion and no buyer having been found, the company is said to be leaning toward cutting its losses by closing the smartphone division fully.

LG's recently announced smartphone projects, such as "Rainbow" and "Rollable," are believed to have been scrapped, as the company looks to utilize its existing mobile workforce elsewhere in the business, such as the vehicle component solutions division.

LG is expected to publicize the decision about its smartphone business unit next month after a board meeting.

Tag: LG

Top Rated Comments

mtneer Avatar
15 months ago
This is terrible news. With many of the Chinese makers in the doghouse, this consolidation cannot be good for consumers.
Score: 14 Votes (Like | Disagree)
SkippyThorson Avatar
15 months ago
Wow. This is a bigger surprise than the slaying of Palm and Blackberry. Not to mention; can't find a buyer? No other manufacturer (Samsung) of smartphones saw fit to expand their lineup or just purchase the IP? That's something.
Score: 9 Votes (Like | Disagree)
cmaier Avatar
15 months ago

Wow. This is a bigger surprise than the slaying of Palm and Blackberry. Not to mention; can't find a buyer? No other manufacturer (Samsung) of smartphones saw fit to expand their lineup or just purchase the IP? That's something.
Maybe they wanted to sell the business and not the IP? Given the breadth of LG and the fact that they will continue to make components, etc., likely LG wants to hold onto the IP.
Score: 9 Votes (Like | Disagree)
JosephAW Avatar
15 months ago
My LG flip phones were better than Apple’s flip phones. :p
Score: 8 Votes (Like | Disagree)
BootsWalking Avatar
15 months ago
They went from boot loop to bankruptcy scoop.
Score: 8 Votes (Like | Disagree)
Flow39 Avatar
15 months ago
Sad to see them go, but I could see the writing on the wall for awhile. The last super solid contender they had was the LG G4. After that, they had some okay phones like the V20, but nothing that would make someone buy it over one of the competitors’ products in most cases. The G2 and G3 were great phones however, and I’m a bit disappointed they couldn’t have beaten out Samsung in the race since I felt they had a better overall hardware package for the price.
Score: 7 Votes (Like | Disagree)

Related Stories

OLED iPad Pro Feature

LG Preparing Production Lines for iPad OLED Display Panels

Tuesday February 8, 2022 5:41 am PST by
iPad models with OLED displays appear to be ebbing closer to production, as LG Display is preparing equipment at its facilities to make OLED panels specifically for future iPads, The Elec reports. The company is purportedly making significant adjustments to its production lines to be able to supply Apple with OLED display panels for future iPad models. According to the report, this is...
iphone 13 pro max display bleen

BOE's Display for 2023 iPhone Expected to Put Pressure on LG

Friday November 19, 2021 6:01 am PST by
Amid rumors about Apple's custom-designed modem for its 2023 iPhone lineup, a new report today suggested that the display panels destined for these models could put substantial pressure on LG Display's market share. According to research by UBI, seen by The Elec, BOE is converting three of its factories into facilities capable of manufacturing OLED panels for Apple. Until now, BOE has manufac...
LG UltraFine Display

LG's UltraFine 5K Display Will Be Returning as Alternative to Apple's Studio Display

Thursday March 17, 2022 9:09 am PDT by
LG's 27-inch UltraFine 5K external display has not been discontinued and will be back in stock next month, LG has told The Wall Street Journal. Following speculation that the LG UltraFine 5K display may have been discontinued when it went out of stock at most major retailers, LG told The Wall Street Journal that the UltraFine 5K is still in production and has not been discontinued. The...
blackberry dead smartphones

Classic BlackBerry Smartphones Are Officially Dead

Tuesday January 4, 2022 2:51 am PST by
As of January 4, 2022, all classic BlackBerry smartphones running versions of BlackBerry OS will no longer work for calls, text messages, data, and emergency functionality, essentially making them unusable. BlackBerry announced the news in September 2020 as part of a broader company shift to focus on enterprise security and solutions. "As another milestone in the BlackBerry journey, we will...
apple music lg tv

Apple Music App for LG Smart TVs Now Available

Wednesday November 17, 2021 2:56 am PST by
The Apple Music app for LG smart TVs is today rolling out to users, with LG now promoting the app on social media. The Apple Music app for LG smart TVs allows subscribers to stream over 90 million songs, as well as playlists, radio stations, and music videos, with no need for any external hardware such as an Apple TV. The app supports a range of core Apple Music features, such as synced...
maxresdefault

Hands-On With LG's 32-Inch UltraFine OLED Pro Display

Wednesday January 12, 2022 1:12 pm PST by
LG in December announced the launch of its new 2022 32-inch UltraFine OLED Pro display, and in our latest YouTube video, we went hands-on with it to see how it compares to Apple's Pro Display XDR and whether it might be worth picking up depending on the price point. Subscribe to the MacRumors YouTube channel for more videos. Officially named the "32BP95E," the display features a resolution of ...
Oled iPads and MackBook Pro Notch

LG Working to Bring OLED Displays to Future iPad and MacBook Models

Friday March 18, 2022 4:30 am PDT by
LG is working to supply Apple with OLED display panels for two iPad models before providing larger panels for the company's first OLED MacBook around 2025, The Elec reports. LG Display is reportedly aiming to supply Apple with Gen 8.5 OLED panels for Apple's first OLED MacBook. The device is said to be scheduled to launch "around 2025." LG has been evaluating the deposition process to...
european parliament

EU Provisionally Agrees on Law That Would Force Apple to Allow Alternative App Stores, Sideloading, and iMessage Interoperability

Friday March 25, 2022 4:46 am PDT by
European lawmakers have provisionally agreed upon a new law that would force Apple to allow user access to third-party app stores and permit the sideloading of apps on iPhones and iPads, among other sweeping changes designed to make the digital sector fairer and more competitive. The European Council and European Parliament said on Friday they had reached a political agreement on the...

Popular Stories

anker 563 dock ports

Anker's Latest USB-C Docking Station Brings Triple-Display Support to M1 Macs

Wednesday May 18, 2022 7:06 am PDT by
While Apple's early M1-based Macs can only officially support a single external display, there are ways around the limitation. Anker is launching a new 10-in-1 USB-C docking station today which delivers just that. The Anker 563 USB-C dock includes two HDMI ports and a DisplayPort port, and it leverages DisplayLink to carry multiple video signals over a single connection. Given that this hub...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
apple data auction iphone privacy ad

Apple Highlights iPhone's Latest Privacy Features in New 'Data Auction' Ad

Wednesday May 18, 2022 9:00 am PDT by
Apple today shared a new ad highlighting iPhone privacy features like App Tracking Transparency and Mail Privacy Protection that are designed to give users more transparency and control when it comes to their personal data being collected. The ad revolves around a young woman named Ellie who discovers that her personal data is being sold at an auction house, with bids being placed on her...
apple ar headset concept 2

Apple's AR/VR Headset Nearing Completion as Board Gets Demo

Thursday May 19, 2022 9:52 am PDT by
Apple last week demonstrated its upcoming AR/VR headset to Apple board members, indicating that the device is in an advanced stage of development and could see a debut in the not too distant future, reports Bloomberg. Apple has also ramped up development of the software that runs on the headset, with that software expected to be called "RealityOS," or rOS for short. Render via designer Ian ...