More Signs LG Getting Out Of Smartphones
New indications have emerged that LG Electronics is looking to exit the smartphone market with the Korean Herald reporting that their latest LG Velvet and LG Wing models being offloaded at half price in some markets including Korea.
At JB Hi Fi the LG Velvet has been slashed from $900 to $799 as retailers wait on a decision from the Korean manufacturer.
In some markets where the award-winning smartphones have been popular, consumers can get massive discounts and carrier subsidies before the company’s final decision on its planned sale of the smartphone business.
Some observers claim that the price of LG smartphones could go even lower next month.
LG Velvet nicknamed the “water drop phone” released in May of 2020 with a price tag of $89 is available for free at some carriers who are using the device to get people onto their network.
LG Uplus in Korean a network that is part owned by LG is using the latest LG smartphones to lure customers to their network.
“They could be the last phones from LG, and prices are likely to fall further as the company is preparing to withdraw from the market,” an official at one carrier said.
LG had sought to revive its smartphone business with an accumulated deficit of 5 trillion won, with the two models, but losses have continued to mount.
The company reported 841.2 billion won in operating loss of the smartphone unit last year.
Last month, LG announced the company is considering all possible measures to decide on the fate of the mobile business, including an option to hand it over to an outside company.
Vietnamese conglomerate Vin Group is mentioned as a strong candidate for taking over LG’s smartphone business. Microsoft and Google, which have their own smartphone businesses are also potential buyers.
The most feasible scenario is to sell the manufacturing facility for smartphones, while keeping the core mobile technologies that could be utilized for future businesses related to Internet of Things and autonomous driving.
During its earnings call last month, the company underscored, “The mobile technologies are an important asset to smart home appliances and automotive parts.”