LG is mulling an exit from the smartphone business and has halted LCD panel production for Apple’s iPhone. The Korean firm has been dealing with declining shipments and accrued losses of $4.5 billion over the past five years.
The Korea Herald reports LG CEO Kwon Bong-Seok alerted LG employees earlier today that the company is re-evaluating its presence in the smartphone industry:
Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.
He assured employees that the company will retain its current employees from the smartphone division and reassign them elsewhere.
LG’s smartphone shipments have declined in recent years, and now holds a market share of just two percent. LG has posted a loss for 23 consecutive quarters, for a total loss of $4.5 billion.
In related news, LG is reportedly ending its production of LCD displays for the iPhone, says a report by The Elec. LG Display has previously worked to supply LCD display panels for Apple’s second-generation iPhone SE, but failed to meet Apple’s requirements. Japan Display and Sharp now manufacture panels for the iPhone SE. The LG LCD panel factory will be repurposed to manufacture display panels for automobiles.
(Via MacRumors)