[Gadgest] LG phones are running out: what if you have one?

[Draeno]

 

LG Electronics, which became the world's third largest manufacturer of mobile phones, announced Monday that it will no longer produce this type of technology after accumulating some 4.4 billion dollars (3.75 billion euros) in losses in this segment in the last five years.

The South Korean company, which has a plant in Brazil, announced the decision indicating that it is leaving the "incredibly competitive mobile telephony sector" to focus on other spaces that it considers more profitable.

Among the segments in which it sees potential and hopes to focus its resources are components for electric vehicles, future 6G technology, robotics, home automation or artificial intelligence, the Seoul-based company explained in a letter published today.

Jobs threatened in Brazil

The decision promises to directly affect the operations of the plant that LG has in the municipality of Taubaté (Sao Paulo state), where it has some 1,000 employees who assemble smartphones, screens and laptops.

Given the rumors about the closure of LG's telephone business that have occurred in recent weeks, the union representatives of this factory have already told the Sao Paulo media that they fear for the future of some 400 of these jobs.

The South Korean company limited itself to stating today in the aforementioned statement that it "will work together with suppliers and partners throughout the process of closing our mobile phone business" and that "details related to jobs will be determined locally."

The technology company had already been reorganizing the personnel of its telephony branch for some time and assigning it to other less-deficit segments.

In recent years, LG had focused almost all of its Mobile Communications division's manufacturing resources in Vietnam and, in addition to Brazil, maintained some operations in India and China.

South Korean media indicated, citing sources close to the matter, that before adopting this decision the company unsuccessfully sought to sell its business to the Vietnamese conglomerate Vingroup, in addition to the Volkswagen group.

Inventories still available

After announcing the closure, LG indicated that its currently available smartphone inventory will continue to be sold and that it will "provide support in terms of service and software updates for customers of existing mobile products for a period of time that will vary by region."

LG expects "the liquidation of the mobile phone business to be completed by July 31, although inventories of some existing models may still be available after that date."

Looking ahead, the company promises to continue to make use of "core technologies developed over two decades of mobile business" to apply them to "existing and future products."

It is assumed that its exit from this market will mean a short-term drop in its turnover, but many South Korean analysts believe that it will clean up its accounts and that its operating profit for all of 2021 could increase by one trillion won (about 885 million dollars). ) after the abandonment of mobile telephony.

The decision to close comes after LG pointed out in its last results presentation in January that the future of this division, in red numbers since the second quarter of 2015 and with accumulated losses of about 5 trillion won (about 4,434 million dollars), was open to "any possibility.

 

https://www.elcolombiano.com/tecnologia/gadgets/se-acaban-los-celulares-de-lg-que-pasa-si-tiene-uno-OK14879766