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Report: LG has decided to pull out of the smartphone business

LG will purportedly announce the decision on April 5.

Published onApril 1, 2021

LG V60 ThinQ 5G rear panel blue
  • A Korean news outlet has claimed that LG has decided to close its smartphone division.
  • This wouldn’t be the first time we’ve heard about a shutdown this week.

LG confirmed earlier this year that it was considering all options for its money-losing smartphone division, including a sale. Now, it looks like a sale is off the cards and that the Korean company has apparently made the decision to shutter the division instead.

The Korea Times reports that LG has indeed chosen to pull out of the smartphone business and relocate these employees to other divisions within the company, citing industry sources.

“LG has considered various options such as a sale, split sales or pulling out of the smartphone business, but decided recently to pull out of the business,” the outlet quoted a source as saying. The source further claimed that an official announcement will come at the company’s board meeting on Monday April 5.

Related: Does LG’s mobile phone business deserve to die?

This isn’t the first time we’ve heard about an apparent shutdown being on the cards and an April 5 announcement. Twitter account @FrontTron made the claim earlier this week, adding that employees could be reassigned to the home appliance division. The Twitter user also claimed that it would be “unlikely” that LG continues rolling out software updates after the shutdown, but we’ll need to wait for official news in this regard. A report out of Korea last week also hinted at a shutdown, alleging that sale discussions fell through.

We contacted LG for comment regarding the claims, but the company told Android Authority that it doesn’t respond to speculation. So all eyes will likely be on Monday for possible news.

This would make for a major shake-up in a smartphone landscape that has already been rocked by HUAWEI’s US-induced sales dive. LG’s smartphone division hasn’t been profitable for years now, but it’s still a top three player in North America and a top five player in Latin America. It also has a presence in numerous other markets around the world, so plenty of retailers and carriers will be looking to fill this gap if LG is indeed pulling out of the mobile game.