UPDATE: Bids to acquire LG’s smartphone business have reportedly been placed. The updated story continues below.
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Those rumors were quickly rebuffed by the brand when contacted for a comment, but now additional reports suggest LG does indeed have some important changes in the pipeline for its business.
Five companies have submitted bids for LG’s smartphone business
In the global market, competition in the mobile business including smartphones has gotten fiercer. LG Electronics believes we have reached the point where we need to make the best decision about our mobile phone business, considering current and future competitiveness. Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.
Display manufacturer BOE, who could be the supplier of flexible OLED displays for the upcoming LG Rollable, is said to be interested too.
If LG chooses this path, an announcement of the sale is expected in March and the deal would include all divisions except for two international branches, although these haven’t been specified. After that, the reports claim LG itself will only create and sell one smartphone each year. The other devices on sale will simply be ODM devices with an LG badge.
Rather than selling its business, LG may simply exit the flagship segment
When PhoneArena contacted LG for a statement on the matter of exiting the premium smartphone segment, LG said the following:
LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021. As of today, nothing has been finalized.