Lg Electronics: South Korean multinational company LG Electronics is considering shutting down its mobile communication unit instead of selling it. According to media reports, people familiar with this matter have given information about it in the electronic industry on Sunday.
A Korean newspaper Donga Ilbo has reported that talks with Volkswagen AG of Germany and Vingroup JSC of Vietnam over a possible sale of the business failed. Earlier in January, Kwon Bong-aok, CEO of LG Electronics, said that all options were on the table for a loss-making operation.
The report said that the company stopped the development of a phone with a rollable display last month, and has put the planned first-half rollout of all new smartphones in the box. With this, the report also said that the company can share its decision on the mobile unit business with its employees by next month.
In January, LG Mobile Communications announced full-year 2020 revenue of KRW 5.22 trillion ($ 4.66 billion). In the fourth quarter, it was 4.9 percent higher than the same period of 2019, which stood at KRW 1.39 trillion (1.24 billion dollars). At the same time, it was down 9.2 percent from the third quarter, due to the decrease in 4G chipset and slow sales of premium smartphones in overseas markets.
In January, the company announced KRW 63.26 trillion ($ 56.45 billion) revenue in 2020 and posted a profit of 3.20 trillion ($ 2.85 billion), a 31.1 percent increase over 2019. The company claims that this increase is due to the increase in vehicle component solutions along with its premium home appliances and OLED TVs.
KRW in the fourth quarter grew by 16.9 percent from the same period of 2019 with sales of 18.78 trillion ($ 16.76 billion) and 11 percent higher than the previous quarter. Despite the impact of COVID-19, KRW’s quarterly operating profit of 650.20 billion ($ 580.19 million) increased 539 percent compared to the fourth quarter of 2019.
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