LG could sell its smartphone division to a Vietnamese manufacturer

LG could well get rid of its smartphone division, must be successful. According to the Business Korea newspaper, the brand could sell it to a Vietnamese group: VinGroup. For the moment, nothing has been finalized yet, but such an operation would be a small earthquake in the world of mobiles.

lg smartphone end

LG’s smartphone division is struggling to convince. Although the Korean manufacturer tries to innovate with original formats and attractive products, nothing helps. For all these reasons, it could definitely abandon the world of mobility, according to the latest leaks.

On January 20, the very serious Yonhap News had said that LG was considering getting rid of its mobile division. The site was based on an internal memo, but at the moment nothing is official. Business Kora adds a layer today, indicating that LG is fondling the idea of ​​selling it to a Vietnamese group: VinGroup.

VinGroup is not new to the world of telephony, since the group designs and already manufactures LG branded smartphones in ODM (Original Design Manufacturer). The know-how will therefore always be there, even if the latest innovations of the Korean brand will logically no longer be in the game. A scenario reminiscent of HMD Global, which still designs Nokia branded products.

Endless difficulties

LG is experiencing serious financial difficulties in the mobile segment. As The Next Web points out, it’s been 23 quarters, almost six years, that the builder has not made any money with his smartphones. Since 2015, more than 3.7 billion euros have been lost.

The brand has not known how to renew itself over the years and above all has suffered fierce competition from Chinese smartphones, cheaper and more efficient in the entry and mid-range segment. Today, LG is no longer even in the top 10 smartphone manufacturers, whereas it was in the top three in 2015.

At CES, LG nevertheless continued to surprise, presenting for example a smartphone with a roll-up screen. A few months ago, it was the Wing, a phone with two screens including a swivel, which had greatly intrigued. LG has not yet commented on sales rumors.

Source: The Next Web