◀ Anchor ▶
LG Electronics finally decided to close the mobile phone business.
It means that the accumulated deficit is 5 trillion won, and now we will focus our capabilities on other businesses.
Reporter Seo Yoo-jeong reports.
◀ Report ▶
Chocolate phone with sensational design and cute name.
Prada phone in collaboration with Italian luxury goods.
And a secret phone.
These are LG Electronics’ mobile phones that were very popular before the smartphone era came.
[2002년 9월/사이언폰 출시]
“When I went to the overseas market by applying a new design concept that no other maker in the world thought of,’No, how can I make such a phone?'”
But a crisis has come.
The advent of the smartphone.
Will we stick to the existing business that goes well, or will we jump into a new smartphone?
Samsung Electronics released the Galaxy series in 2010 and pursued Apple fiercely, but LG’s choice was different.
[김지산/키움증권 센터장]
“It must be said that LG Electronics’ response has been late in the process of the iPhone advent in the market and the rules of the game change.”
Last year, the global market share of LG mobile phones shrank to 1.5%.
Since 2015, the accumulated deficit for the sixth year has reached 5 trillion won.
LG Electronics held the board of directors today and decided to completely withdraw from the mobile phone business on July 31st.
[LG전자 관계자]
“Through selection and concentration, we focus on businesses that can improve internal resources and secure a competitive advantage.”
3,700 employees will be assigned to affiliates and other business units, and after sales and updates for consumers will continue.
LG’s choice instead is the automotive electronics business.
This is because, as the era of electric vehicles and autonomous vehicles approaches, the electronic equipment market for automobiles is expected to grow tremendously.
We have decided to establish a joint venture with Magna International, the world’s third largest auto parts maker, and we are preparing an infotainment business in cooperation with overseas companies to provide information and entertainment to people who no longer need to drive in self-driving cars.
Automotive electronics, batteries, and artificial intelligence.
In the future that LG Electronics draws, I can read the will not to repeat the failure of smartphones.
This is Seo Yoo-jeong, MBC News.
(Video Editing: Woojin Actor)
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