LG Electronics’ (066570.KS)CEO sent an e-mail to the company’s Mobile Communications division that was intended to ‘calm’ them in anticipation of the company’s announcement of its financial results near the end of this month. The financial results are usually followed by a review of the company’s plans and expectations for each segment, and after twenty-three quarters of losses, we expect the Mobile division’s employees could use some reassuring words. The e-mail mentioned that mobile communication division employees, regardless of what decisions are made, will remain with the company ‘as a general rule’ and should not be anxious, although it certainly seems that management is about to make some changes to the division, which saw disappointing sales results from the company’s October 2020 release of the ‘Wing’ smartphone that has a second display that rotates 90⁰.
There has been considerable speculation that LG would sell or exit the mobile phone business, although that has been the case for a number of quarters, and affiliate LG Display (LPL) has recently halted LCD smartphone display production at the company’s AP3 fab in lieu of automotive display production, but as Apple has converted the iPhone family to OLED, there was little reason to maintain such production. The company seems to have reached a point (perhaps years ago?) when a real decision must be made concerning its mobile communications division, and is said to be open to all possibilities, but the lack of successful smartphone products would indicate that internal management and development is lacking and perhaps ceding the conceptual development and design to an outside source and use LG’s brand to market a new smartphone product might be a possibility. It’s a hard pill to swallow, but a smaller one than abandoning a business where it has competed for many years. JOHO.
There has been considerable speculation that LG would sell or exit the mobile phone business, although that has been the case for a number of quarters, and affiliate LG Display (LPL) has recently halted LCD smartphone display production at the company’s AP3 fab in lieu of automotive display production, but as Apple has converted the iPhone family to OLED, there was little reason to maintain such production. The company seems to have reached a point (perhaps years ago?) when a real decision must be made concerning its mobile communications division, and is said to be open to all possibilities, but the lack of successful smartphone products would indicate that internal management and development is lacking and perhaps ceding the conceptual development and design to an outside source and use LG’s brand to market a new smartphone product might be a possibility. It’s a hard pill to swallow, but a smaller one than abandoning a business where it has competed for many years. JOHO.
LG Electronics - The Wing - Source: LG
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