We have a feeling that the mobile phone industry will be talking about LG’s fate more often now. Just last week, we confidently said that LG isn’t closing the phone business yet. But we learned yesterday that the other South Korean tech giant could soon exit the smartphone business. The latest rumor is related as LG is said to be in talks with another company to sell the phone business. LG is believed to be arguing with Vietnam’s Vingroup.
We take things with a pinch of salt, but the company reportedly sell the smartphone business. It may be final soon, as Vingroup’s offer was the best among the offers. The company is big in Vietnam, so it can afford LG’s mobile unit. With a market capitalization of $ 16.5 billion (USD) in 2020, Vingroup can pay.
At the moment, Vingroup captures 14 percent of the market capitalization of Vietnamese companies. He has different ventures from mobile phones to automobiles, distribution, construction, real estate, tourism and hotels. It is mainly known in Vietnam. It does not have a large presence in the global market. Hopefully LG will help.
In particular, Vingroup wants to take over LG Electronics’ smartphone business in the US In this way, it can enter the US market even if LG’s reach is not that great. Last year, it captured 12.9 percent of the country’s market.
LG and Vingroup have been working together since 2018. The latter makes phones like ODMs for LG Electronics. The company is the third in the country after Samsung and OPPO. LG is likely to help improve Vingroup’s position in the market. In return, the LG name will remain in the mobile market.
This is a story in development. We will inform you from time to time.