LG Electronics Files Patent for Rollable Phone Design... Raising Sale Value?

New Design Patent Filed in China
Manufacturers Focused
LG Considering 3 Options Including Smartphone Sale
Also Seen as Effort to Raise Sale Price

[Asia Economy Reporter Cha Min-young] LG Electronics, which is restructuring its smartphone business, has succeeded in filing a design patent in China for a 'rollable phone' with a screen that rolls up. The new type of rollable phone utilizing a dual display has attracted significant attention both domestically and internationally. Regarding the patent, market opinions are divided between optimists who foresee the sustainability of the future rollable phone series as a new growth engine and pessimists who believe it is merely a step to increase the sale price.

According to foreign media reports and related industries on the 15th, the design patent for LG Electronics' rollable phone, disclosed by the China National Intellectual Property Administration (CNIPA) on the 12th (local time), includes a dual display. This differs from the existing rollable phones with screens that roll up.

LG Electronics determined that a camera for selfie shooting was necessary and attached a secondary display on the back. When the display is unfolded, it expands by up to 40%, offering a screen larger than most commercial tablet PCs. A rail system was applied on the back to facilitate sliding. Detailed components such as buttons, speakers, and microphones are arranged on the left side.

The rollable phone first appeared at the 'International Consumer Electronics Show (CES) 2021 Press Conference.' It was the moment when the rollable phone, hinted at during the release of the 'LG Wing' in September last year, was unveiled. Although it was disappointing that it was revealed only through a short 5-second teaser video rather than an offline prototype that tipsters could test directly, the market response was generally positive.

Teaser video of 'LG Rollable' unveiled by LG Electronics at CES last January

Smartphone manufacturers show considerable interest in rollable phones. Chinese IT company Oppo, for example, claimed to be the 'world's first rollable phone' and released renderings and operation videos of a rollable phone last November. However, since Huawei beat Samsung Electronics to launch the world's first foldable phone but the prototype and the actual product showed significant differences, causing distrust in the market, industry attention is now focused on LG Electronics. There are also rumors about Samsung Electronics possibly launching a rollable phone.

LG Electronics itself is deeply considering scenarios for selling rather than launching a rollable phone. Earlier this year, LG Electronics announced that it is considering three options for its smartphone business?sale, partial sale, or retention?taking into account the profitability and future competitiveness of the Mobile Communications (MC) division. Kwon Bong-seok, CEO of LG Electronics, informed the division members via email that "various options, including sale, are being reviewed."

There is also analysis that the recent rollable phone design patent is part of efforts to increase the business value ahead of a sale. Potential buyers for LG Electronics' business units include American IT companies such as Google and Facebook, automotive company Volkswagen, and Vietnamese IT company VinSmart. However, there are forecasts that selling the smartphone business will not be easy due to market saturation. The rollable phone release, initially expected in the first quarter after the teaser video was released last month, has been tentatively postponed. LG Electronics stated that research and development (R&D) on the rollable phone is ongoing.

Reports from the media that component suppliers such as Chinese display manufacturer BOE have halted display supply projects related to LG Electronics' rollable phone are casting a darker outlook. An LG Electronics official said, "We cannot confirm BOE's decision," and added, "The direction of the smartphone business will be shared with the market once internal decisions are made."