LG Electronics on Wednesday made a statement on the potential future of its Mobile Communications (MC) business, which has been posting 23 consecutive quarters.
The statement was likely made to calm employees prior to the company’s announcement on the direction of the business expected around the end of the month.
LG Electronics CEO Kwon Bong-seok said in an email to MC employees that their employment will be maintained as a general rule no matter what direction is made on the direction of the business. Kwon also told them not to be anxious.
The mobile business has posted 23 consecutive quarters of loss from the second quarter of 2015 to the fourth quarter of 2020. Last year, the company’s Wing smartphones, which had a new dual screen form factor, sold less than expected. The firm’s low and mid-tier phones are also falling behind those of Chinese rivals.
LG Electronics said it believes it has reached a point where it needs to make a cold judgment on the current and future competence of the mobile business to make the best choice.
The company was open to all possibilities in reviewing the direction of the mobile business.
LG is likely considering exiting or selling the business. A company representative told a Korea news outlet that it was considering exiting and selling the business as one of the possibilities.