LG could leave the smartphone business and is already in talks with potential suitors to buy its unit. After yesterday’s reports on LG’s internal memo notifying employees of this step, Korean dailies today report that the company may sell the smartphone segment to a Vietnamese conglomerate, VinGroup.
According to Business Korea, VinGroup has the most attractive offer on the table for the Korean tech giant’s phone business. The Vietnamese group already produces LG phones as an Original Design Manufacturer (ODM). It’s the third largest phone maker in Vietnam after Samsung and Oppo.
As Korea Times reported yesterday, the continued losses are one of the main reasons LG wants to unload its mobile unit – it has suffered a slump for 23 consecutive quarters. The company spent more than $4.2 billion during this period in operating losses.
LG is a long-time Android device maker, and it’s given us some memorable hits, including the Nexus 5 and its G-series phones. Lately, the company has been exploring more unique designs, such as the LG Wing and the next LG Rollable. While we marvel at these limited-edition phones, the sad reality is that they haven’t helped float LG’s business for quite some time now.
Even if the Korean tech giant pulls out of the business, devices under this label might not go away. We may see a few models every year, just like other defunct smartphone brands such as HTC and Blackberry.