[경제]Although rollable phone was released…LG is reviewing withdrawal of ‘5 trillion deficit’ smartphone

[앵커]

LG Electronics is reviewing the withdrawal of the smartphone business, which has been in the red for six consecutive years.

We will connect reporters to find out more details. Reporter Lee Ji-eun!

First, how did the news that LG Electronics might close its smartphone business?

[기자]

Yes, LG Electronics announced yesterday afternoon that it is “opening all possibilities and carefully examining the direction of mobile business operation.”

He also explained that it is time to make the best choice by calmly judging competitiveness.

LG made such an official position as stock prices and the industry continued to sell sales.

In addition, President Kwon Bong-seok sent an e-mail to employees directly yesterday, saying that no matter how the mobile business direction is determined, employment will remain, so there is no need to be anxious.

Analysis shows that the final decision is not far from the fact that the CEO made it himself.

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Then, how bad was LG Electronics’ smartphone business performance?

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Yes, it can be said that the smartphone business is LG Electronics’ painful finger.

From 2015, it recorded an operating deficit for the 23rd quarter, for six consecutive years.

Only the operating deficit accumulated by the end of last year amounted to 5 trillion won.

LG Electronics also explained that it has made great efforts to improve its business structure, such as moving its factory to Vietnam and increasing the ratio of manufacturers’ development and production.

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What should be the cause of this sluggishness?

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Yes, it can be said that it was a pain to not keep up with the changes of the times quickly.

Some of you may remember the Chocolate Phone and Prada Phone, which were popular in the mid-2000s.

In the era of feature phones, LG Electronics has enjoyed a heyday by gaining popularity with these products.

However, it entered the market belatedly after the trend changed to smartphones, and despite various attempts such as modular smartphones, it was not successful.

Apple and Samsung in the premium product market, and Chinese companies in the mid- to low-end product market.

Last year, it launched a strategic smartphone wing that rotates the display, but the cumulative domestic sales volume was less than 100,000 units.

Currently, LG Electronics’ global smartphone market share is about 1-2%, ranking in the top 10.

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Then, what will happen to the future of the rollable phone that LG announced this year’s release?

[기자]

Yes, LG Electronics introduced its rollable phone for the first time at CES on the 11th.

It is a product that expands the screen as the display that was rolled up like the so-called’sangsomun’ is unfolded.

The video was released for about 10 seconds, but the market reaction was hot.

However, as news that the business could be closed within 10 days after receiving favorable reviews, concerns about the future of rollable phones are also emerging.

However, LG Electronics is in a position that it will continue to develop rollable phones.

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LG Electronics’ share price rose due to the possibility of withdrawing smartphones?

[기자]

Yes, the news that the deficit business can be closed is a good news in the market.

After the news was first announced yesterday, LG Electronics’ stock price soared more than 12% and continues to rise today.

In addition, some securities companies have raised their target price for LG Electronics to the 200,000 won range.

Ytn Lee Ji-eun from the Ministry of Economy[[email protected]]is.

[저작권자(c) YTN & YTN plus 무단전재 및 재배포 금지]