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LG eyeing best deal for mobile phone unit, open to every possibility
LG Electronics says it's open to 'every possibility' for its money-losing its (MC) mobile communications business unit due to fierce competition in the global market.
According to LG, South Korea's major home appliance maker, it has reached a point where it needs to make the best decision for its MC business unit and is thoroughly reviewing plans.
There were rumors that it may sell the unit.
LG Electronics CEO Brian Kwon assured employees in the mobile business will keep their jobs regardless of the unit's fate.
LG's MC business has been losing since the second quarter of 2015. As of last year, it has accumulated operating losses of around 5 trillion won.
Analysts estimate that the mobile unit narrowed its operating losses from 1 trillion won in 2019 to around 800 billion won last year.
Struggling mobile phone sales amid the pandemic have apparently prompted LG to consider selling the business.
LG Electronics has been adjusting its product portfolio and expanding original development manufacturing deals.
Its global smartphone market share is estimated at around 2 percent, overshadowed by Apple and Samsung Electronics in the premium segment, while struggling to increase sales against Chinese brands in the budget smartphone sector.
In South Korea, LG Electronics was the third-largest smartphone vendor last year with a market share of 13 percent, with Samsung topping the domestic market with a 65 percent share, followed by Apple with a 21 percent.