“Currently, the daily work of internal employees is unchanged. I admit that the market share is low in the domestic market. However, the smartphone business of the LG MC division has maintained a small sales volume in the overseas market for a long time. Now, the business is easy to do. Can I give up?”
While LG Electronics is reviewing its mobile business, including smartphones, from the beginning, employees inside the Mobile Communication (MC) Division are complaining of anxiety about the uncertain future.
In the current market, there is a strong trend that LG Electronics is preparing to sell or withdraw the smartphone business as the company has officially reviewed its mobile business and recently stopped developing rollable phones after the rumors of the withdrawal of the smartphone business occurred at the end of last year.
Because of this, front-line employees want to talk in a frank sense, but the atmosphere inside the company is not a reason, so they are suffering. Above the line,’Nothing changes. It is a message that we avoid phone calls as much as possible because there is nothing to answer except saying, “There is nothing confirmed,” if there is a call asking for personal safety or inquiries about the business direction from a local mobile carrier.
A manager-level employee of the MC business division said, “It is said to keep hiring, but because of anxiety about the future, I cannot rest comfortably even when I go home.” I keep coming, but will the work be caught in my hand?”
A parent in charge of global overseas sales said, “(Nothing has been decided), on the premise of the worst situation, these and other stories come out and this is reported in the media…Isn’t it too far ahead?” ) It seems to be encouraging them to fold.”
Until recently, it is said that the daily work of LG Electronics’ MC division, including overseas sales such as North America, remained unchanged.
LG mobile phone is a brand that reached the third place in the world market after Nokia and Samsung Electronics in the early and mid-2000s feature phone days. Looking back to’Cell Star’,’Hwatong’,’Freeway’, and’Cyon’ (CION, CYON), LG Electronics’ mobile business history is close to 30 years. There are also many popular pet name products such as chocolate, shine, wine, and lollipop. It is the mobile business that LG Electronics has cultivated as a banned okyeop.
For that reason, there are many voices concerned that if LG leaves its mobile business, it will adversely affect the domestic smartphone ecosystem, including parts suppliers. If LG, a global brand, withdraws from the smartphone business at once, many small and medium-sized business partners may become difficult and shrink. Consumers’ choices are also reduced that much.
Some advise that LG Electronics will take this opportunity as a starting point for its business reorganization, and diversify its product portfolio model at mid-to-low prices and seek a direction to develop its business in the long run. .
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This is because the brand LG has a large purchasing influence in North America and the third world, and is a brand that can sufficiently compete with the Chinese smartphone Big 3 in the mid- to low-end market. According to a market research organization, LG Electronics sold 24.7 million units (1.9% of share) of smartphones last year. It is ranked 9th in the world, and still occupies the low 10% level in the North American market, which is a garden. The MC division, which has recorded a cumulative deficit of 5 trillion won over the past five years, has annual sales of 5 trillion won and 900 billion won as of last year.
An official in the industry said, “The LG Electronics terminal business is different from domestic and overseas. The business in North America is very large. We will not be able to stop the numerous businesses we have unfolded at once.” Is relying on overseas sales rather than domestic sales. There is a plan to change the business portfolio from the existing high-priced policy to a mid-to-low price model, and to reduce losses while reducing losses from a longer-term perspective.