LG Could Close Down Its Mobile Phone Business

LG Electronics Inc. may shut down its mobile phone division since it has become unprofitable in recent years. The company will announce the final decision in early April.

The company tried to sell the business, but negotiations with potential buyers, including German Volkswagen AG and Vietnamese Vingroup JSC, were unsuccessful.

LG halted the development of rollable display phones last month, and later it postponed all new smartphones' planned to be released in the first half of the year.

The South Korean tech giant also considered the possibility of outsourcing the production of smartphones, but then they talked about inexpensive models.

The company said that as the competition in the global mobile device market becomes fiercer, it is time for LG to decide and make a better choice.

Over the past five years, LG's mobile division has accumulated a loss of $4,5 million, while other divisions have grown and beaten record after record.