"Smartphone Industry Faces Major Blow"...Global Attention on LG Phone's Fate

LG Electronics Faces Smartphone Business Exit Rumors
Overseas Netizens React
Criticism of Marketing Weakness and Lack of Insight
Focus on Personal Memories and Technical Aspects

Smartphone Developer Community XDA Developers Twitter Screen

[Asia Economy Reporter Cha Min-young] "Their marketing skills did not match Apple's, but some technologies were overwhelming." As LG Electronics, which made a mark in the global smartphone market with its technological prowess, hinted at the possibility of withdrawing from the smartphone business, overseas consumers are also expressing their regrets.

According to industry sources on the 23rd, Mishal Rahman of the smartphone developer community XDA Developers said, "LG's loss in the smartphone market will be a big blow to the industry," adding, "Even if LG's efforts were not entirely successful, LG's smartphones fulfilled consumer needs that other companies could not meet." He especially gave high marks for technological capabilities. Regarding the 'LG V40,' he also noted that it was "the first smartphone to feature a triple camera setup consisting of main, wide-angle, and telephoto lenses."

The response from non-expert general consumers is also enthusiastic. Twitter user A commented on Twitter, "Some LG products are very good and innovative, but they didn't seem to be as skilled in marketing as Apple." User B criticized, "LG's biggest failure was the ability to read the market," adding, "The mid-to-low-end models were subpar, and the flagship models had other issues or failed to fully capture what people wanted." User C asserted, "Losing a competitor will not have a positive impact on the industry."

Apple-related news specialist MacRumors Twitter screen

LG Electronics is reportedly considering selling only the production division, excluding the core research and development (R&D) personnel of the Mobile Communications (MC) business division. LG currently has local production plants overseas in countries such as China, Brazil, and Vietnam. Kwon Bong-seok, President of LG Electronics, acknowledged the possibility of withdrawal in an official email sent to the MC business division, stating, "We are reviewing the direction of business operations with all possibilities open." Until now, LG Electronics has fully denied rumors of withdrawing from the smartphone business due to poor performance, but this suggests that the moment of decision is approaching.

If a sale occurs, potential buyers mentioned include Vietnam's Vingroup's smartphone company VinSmart, U.S. companies Facebook and Google, and Germany's Volkswagen. These companies have been repeatedly mentioned in the recurring withdrawal rumors, but Facebook recently drew attention by newly appearing on the list of acquisition candidates. Ross Young, an analyst at the display market research firm DSCC (Display Supply Chain Consultants), analyzed, "At this point, the most likely bidder is VinSmart, the smartphone company of Vietnam's Vingroup," adding, "Volkswagen also ranks high considering potential synergies related to its electric vehicle business."

Accordingly, there are also forecasts that the future smartphone product lineup has become uncertain. MacRumors, which covers Apple-related news, pointed out, "LG unveiled one of the world's first rollable smartphones at CES, but the fate of this device has become very uncertain, just like other LG smartphones such as the 'LG Velvet' and 'LG Wing.'" The IT specialty media The Verge also reported, "LG confirmed the new rollable device (rollable phone) and announced plans to launch it within the year, but as they reconsider their smartphone business plan, this could also be the last LG phone we see."