LG has been around for a long time in the mobile market. But today, the brand could be preparing its departure. Why ? How? ‘Or’ What ? Here is what we know.
It is very difficult today to exist on the mobile market in the face of the big names cannibalizing the vast majority of sales. In this context, it often happens that brands leave the market, or delegate all or part of their activity to third parties. This could soon be the case of a long-standing brand, LG .
LG could sell its smartphone branch to a Vietnamese conglomerate
After initially denying a possible sale of its smartphone division, we finally learned that LG was indeed considering such a transaction. Although there are currently no concrete plans, the company said it was very much the real deal today. This is therefore just one option among many, and in particular that of continuing in this market.
Today, a report from BusinessKorea announces that LG has a potential buyer for its smartphone division. If this report is to be believed, LG would therefore be interested in selling its dedicated mobile branch, and it could be sold to the Vietnamese conglomerate called Vingroup. The company is colossal in Vietnam, it represents no less than 14% of the market capitalization of companies in the country.
Conglomerate with which the brand has already been working for several years
The conglomerate operates in a wide variety of industries, including hospitality, real estate, distribution, construction, automotive and mobile. This certainly explains his interest today in acquiring LG’s smartphone branch. We imagine that such an operation would give him a nice boost.
In truth, Vingroup has already worked with LG in recent years, via an ODM contract – to manufacture devices -. Acquiring LG’s smartphone division would therefore represent an important additional step for the group and this could allow it to penetrate the American market. That being said, as announced above, there is currently nothing done. We will have to wait for a possible official communication.