LG's continuous struggle to survive in the smart phone market seems to have hit the rock bottom. The company is now considering to withdraw itself from the market in 2021, owing to the loss of $4.5 billion over the past five years.
The employees of the company already have been notified about the possibility of considerable changes in its smart phone department.
The CEO of the company Kwon Bong-seok has stated in an internal memo addressing his employees that the company is likely to change its course for its smart phone business. Worldwide the smart phone market is growing at a rapid speed and keeping up with the pace of the competition has become a difficult task for LG. To survive in the market for some time, a few tough decisions are imperative to be applied. As for now the probable measures could be sale, withdrawal or downsizing of its smartphone wing.
The company authorities have neither confirmed nor accepted the statements of the said internal memo. LG spokesperson said in his statement that the final decision is yet to be locked and till then the company management is opting for necessary measures to overcome its hurdles in the smart phone business in 2021.
Over the years LG has come up with various new products like the G7, the V40, the G8, and the V50. All these products supposedly had the potential and the 'X' factor to compete with brands like Samsung and Huawei. But the consumers didn't seem to agree with the vision of the company hence all their ambitious attempts fell flat.
LG's latest Velvet and Wing smartphones have also failed to attract the consumers and proved to be market failures.
At present Apple, Samsung, Huawei, Xiaomi and Vivo are the big players and market dominators of the smart phone business worldwide. LG from its previous failed attempts and losses has seem to assess that it needs to think out of the box to turn the lime light towards its direction. The company's rollable phone is the product of that thought and an attempt to present a different smart phone experience for its users. At the Consumer Electronics Show the company showcased the teaser new rollable smart phone with a unique resizable screen" that turns the phone into a small tablet display.
This new unique rollable smart phone from LG is stated to be launched in 2021. This can prove to be a game changing opportunity for the company. But given the company's recent consideration of exiting the mobile phone business it can be the curtain call for LG mobiles.