LG, South Korea’s largest electronics maker other than Samsung, is preparing to sell its mobile phone business to a Vietnamese company.
LG CEO Kwon Bong-Seok said all employees know this and have already discussed the deal with several buyers.
Among those companies, Vingroup, a Vietnamese company, has proposed an attractive price for the deal, which means that the LG smartphone business will likely be sold to this company.
The company already manufactures smartphones for LG under the ODM (Original Design Manufacturer) contract, and Vingroup is the third-largest mobile phone maker in Vietnam, apart from Oppo and Samsung.
LG has tried various strategies over a while to turn its mobile phone business into a profitable business. Still, all of them have failed, and in the wake of that, it has reported losses for 23 consecutive quarters, with a total loss of US $ 4.2 billion.
But LG has recently introduced the latest smartphone concepts like LG Rollable and LG Wing, so it is doubtful whether Vingroup will take over these concepts.
However, if the deal goes through, LG could be seen as one of the new entrants to the collapsed smartphone business, such as Blackberry and HTC.
Sony was also at the brink of disaster, but by the last quarter of 2020 it had managed to control that risk to some extent, and for the first time in four years, Sony is expected to turn 2021 into a revenue year.