A few days ago, we reported that LG might be pulling out of the smartphone market due to massive losses. The rumor is that a firm in Vietnam may pick up the LG mobile division. The company has lost about $4.5 billion US dollars on its endeavor in this segment. There have been rumors that the phone vendor might be preparing to downsize or dismantle its mobile device business unit.
This “Vietnamese conglomerate” is said to be in talks to pick up the mobile division, but no price or timeline has been given. According to GSM Arena, Vingroup Co has put in an “attractive” offer for LG’s mobile assets.
According to BusinessKorea, Vietnam’s Vingroup Co has put the most attractive offer to buy LG’s smartphone business. The company accounts for 14% of the market capitalization of listed Vietnamese companies. It has a diverse portfolio of businesses with hands in various industries including hotels, real estate, distribution, cars, smartphones, and land development. The company already produces smartphones for LG under ODM contract and is the top third smartphone manufacturer in Vietnam behind Oppo and Samsung.
According to the report, Vingroup Co is interested in taking over LG’s smartphone business in the US and an acquisition would push Vingroup Co to a global presence. LG is reportedly interested in selling its smartphone business “piece by piece” as selling off the entire thing would prove to be very difficult.GSMArena
The news of LG abandoning its mobile efforts brought a mixed reaction from users, with many lamenting its exit. There have also been rumors that LG may stop making mobile displays as well. The company supplies OLED displays to many other smartphone makers, including Apple.