[단독] LG Electronics, which folds smartphones, rolls out a rollable phone

Input 2021.02.22 10:21

LG Electronics officializes the possibility of withdrawing the smartphone business
Notifying BOE of China to stop developing rollable phone display
BOE “Review of Development Cost Claim” in partnership with LG Electronics

LG Electronics (066570)It has been confirmed that the development of the ambitious rollable (screen curling) phone that was released as a video in January of this year was stopped. As it has decided to sell its smartphone (MC) business unit, the rollable phone release is abolished. Accordingly, Chinese panel maker BOE, which has developed a display, a key component of a rollable phone, in cooperation with LG Electronics is reviewing a claim for development costs to LG.

According to the industry on the 22nd, LG Electronics is known to have stopped all three organic light-emitting diode (OLED) display development projects including rollable phones on the BOE side. Among them, the development of a rollable phone, which was called’B Project’, received attention as it was known that BOE has been facing head-to-head with LG Electronics since last year. There is an expectation that LG Electronics, which is lagging behind in the smartphone business, will be able to win and win with a new form factor (product form) and make a turnaround.

LG Electronics previously unveiled a rollable phone that automatically unfolds and folds in 5 seconds at the world’s largest information technology (IT) and home appliance exhibition’CES 2021′ held online in January. As early as the first half of this year’s release was predicted, there was a story that’LG Electronics introduced a rollable phone to show off its technology ahead of the sale of the smartphone business’ because it did not disclose specific specifications rather than the actual release.

BOE, which is pursuing Samsung Display and LG Display in the high-end mobile display market, aggressively invests to increase the supply of displays to Samsung Electronics and Apple smartphones, and also with LG Electronics, such as rollable phones and foldable phones. We have joined forces in development.

The amount the BOE will charge is not known. An industry insider said, “Because the development cost per smartphone model is about 10 million dollars (about 11 billion won) based on Korean panel makers, we are looking for a smaller amount from the BOE.” “Because we set the mass production target as low as 100,000 units, we will not or have accumulated a lot of supplies.” This is not very large considering that LG Electronics’ well-selling smartphone shipments are about 1 million to 1.5 million units per year.

According to Counterpoint Research, LG Electronics sold 24.7 million smartphones last year, recording only 1.9% of the global smartphone market share. LG Electronics’ smartphone division recorded an operating loss for 23 consecutive quarters until the fourth quarter of last year, with a cumulative deficit reaching 5 trillion won.

On January 20, Kwon Bong-seok, president of LG Electronics, said, “We have reached the point where we have to make the best choice by calmly judging the current and future competitiveness of the mobile business. We are carefully reviewing the direction of business operation with all possibilities open now. “He formulated the business withdrawal.

An official in the display industry said, “Even if LG Electronics leaves the smartphone business, there is room for cooperation with the BOE in any way with resources such as human resources, intellectual property rights, and know-how in the future. I think it will work.” LG Electronics said, “You can know whether or not to release a rollable phone after the business direction is decided.”