[잘가요 LG폰] Can’t self-innovate…’into history’ in 26 years

‘LG phone’ disappears into history after 26 years. LG Electronics, which could not afford a cumulative 5 trillion won deficit, officially announced the withdrawal of the mobile phone business. However, it plans to continue research and development on core mobile technologies such as 6G (6G) mobile communications and cameras.

LG Electronics held a board meeting on the 5th and decided to end production and sales of the MC (mobile communication) business on July 31st. It has been two months since CEO Bong-Seok Kwon mentioned in January that “It is time to make the best choice by calmly judging the current and future competitiveness in relation to the mobile business.”

An official from LG Electronics said, “In the premium mobile phone market, the yanggang system has been strengthened, and the price competition has intensified as major competitors are focusing on the entry-level mobile phone market.

“In this market situation, we will focus our capabilities on core businesses that can improve efficiency of internal resources and secure a competitive advantage through selection and concentration.” “At the same time, we will accelerate the preparation of new businesses for future growth and improve our business structure. Plan”.

LG Electronics produces mobile phones by the end of May so that it can supply the products promised to customers such as telecommunications companies. We plan to continue consultations in order to reasonably compensate for losses from business partners and partners resulting from the end of the business. In addition, it will continue to provide sufficient after-sales service so that existing customers and existing users do not experience inconvenience.

Employees of the MC business division are also employed. The company plans to effectively relocate it, taking into account each employee’s job competency, LG Electronics’ other business headquarters, and manpower demands of LG affiliates.

Even if LG Electronics terminates its mobile phone business, it continues to research and develop core mobile technologies. Core mobile technologies such as 6G mobile communication, cameras, and software are the necessary capabilities for next-generation TVs, home appliances, electronic parts, and robots. In particular, we are preparing for the era of the all-intelligent Internet (AIoE) in which people, things, and spaces are closely and organically connected, as well as autonomous driving, through spurs on securing original 6G technology.

In addition, LG Electronics is improving the basic structure of its business by diversifying its business based on qualitative growth and rapidly expanding new businesses. The auto parts-related business will be strengthened, and the home appliance and TV business will be expanded to a platform, service, and solution-based business based on future trends.

To this end, we will try new and diverse business models, focusing on the LG ThinQ app, which is a customer contact platform, LG Care Solution, which is a home appliance management service, and a solution business that integrates various products and technologies to provide customers with an integrated solution.

In the case of new businesses, it plans to introduce innovative processes such as in-house ventures and CIC (in-house companies), and actively review mergers and acquisitions (M&A) to secure capabilities, and strategic cooperation.

LG Electronics started the mobile phone business in 1995 with LG Information and Communication. However, it recorded a deficit for 23 consecutive quarters from the second quarter of 2015 to the fourth quarter of last year, and the cumulative deficit amounted to 5 trillion won.