LG May Shut Down Phone Business

LG Electronics may shutter its phone business amid long-standing rumors it was looking to sell it.

LG was once a major player in the smartphone market, but its fortunes have taken a major downturn in recent years. The company has lost some $4.5 billion in the last five years, as Samsung, Apple and Huawei have dominated the market.

Previous rumors suggested LG was looking to exit the smartphone business, considering a sale or downsizing. It now appears LG may be considering even more drastic action, according to Bloomberg.

The most recent reports indicate that sale negotiations with Germany’s Volkswagen AG and Vietnam’s Vingroup JSC broke down with no deal being reached. As a result, LG is considering simply closing the smartphone business.

The company may discuss its plans as early as April.