LG Electronics: Dismantles smartphone division: Continues to hold related patents
-Abandoned sale due to concerns about mobile technology leaks-
LG Electronics:
LG Electronics has abandoned the overseas sale of the smartphone division.
By April 4, it was revealed that the smartphone division had been decided to be dismantled.
The board of directors will be held at the Seoul head office on the morning of April 5 to make a decision.
Sale negotiations with foreign companies:
We went with foreign companies in negotiations to sell until just before the asset assessment.
However, in this sale negotiation, foreign companies were more interested in “LG Electronics’ patents rather than LG Electronics / smartphone business”.
LG Electronics Judgment:
LG Electronics has determined that it will be profitable to continue to hold mobile-related patents in preparation for future industries such as artificial intelligence (AI) and autonomous driving.
Vingroup in Vietnam,
Volkswagen, Germany,
With Google
We have been negotiating the sale.
However, it was decided that “there was no seller desired by LG Electronics, and the business division would be dismantled in the end.”
LG Electronics Overseas Factory:
Vietnam,
India,
Brazil,
Change the usage of smartphone factories in each country.
The policy is to reuse factory materials.
Haiphong, Vietnam smartphone factory:
LG Electronics’ TV / home appliance production equipment will be installed in Haiphong, and the production line will be changed.
As for the Indian factory, the removal plan is influential.
Chosunonline.com AMP
http://www.chosunonline.com/site/data/html_dir/2021/04/05/2021040580002.html
LG Korea: Smartphone withdrawal announcement
Korea LG Electronics:
On April 5, it announced that it would withdraw from the smartphone business.
Abandoned the sale due to concerns about technology leaks to the outside of LG Electronics.
Transferred 3,700 human resources in the smartphone division to the home appliances and television divisions, which are performing well, and utilize the technology.
South Korea has rushed to pursue Japanese electronics manufacturers in its smartphone business.
However, now that Chinese companies are catching up, they are forced to withdraw themselves.
LG Electronics Cumulative Deficit:
LG Electronics sells smartphones worldwide, mainly in North America, Latin America, and South Korea.
Sales of 25 million units in the fiscal year ending December 2020,
Sales are 5,217.1 billion won (510 billion yen),
Operating loss is 841.2 billion won,
The deficit has been in the red for 6 consecutive terms since 15 years.
The cumulative deficit had swelled to the scale of 500 billion yen.
The decline of LG smartphones:
LG’s smartphone business peaked in 2014.
At that time, it had secured a market share second only to Samsung Electronics in South Korea and Apple in the United States.
Huawei, Huawei,
Xiaomi,
OPPO, etc.
It continued to retreat, pushed by the rapid progress of the Chinese.
Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXZQOGM050YV0V00C21A4000000/