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SEOUL, Jan 20 (Reuters) – South Korea’s LG Electronics Inc 066570.KS claimed on Wednesday it wanted to choose what to do with its decline-earning mobile business enterprise and was considering all possibilities.
The company experienced generated losses for 23 consecutive quarters amounting to about 5 trillion won ($4.5 billion) amid “intense” opposition, the organization mentioned in a statement.
LG Electronics shares leapt as a lot as 12% compared to the broader marketplace KOSPI’s .KS11 .7% rise as of 0628 GMT subsequent the statement.
“The levels of competition in the cell small business which includes smartphones has gotten fiercer in the world-wide industry,” LG reported in the clearest indication still that it could be taking into consideration a sale of the troubled unit.
“LG Electronics thinks that it has reached the level the place we require to make the finest selection about our cell mobile phone organization, contemplating recent long term competitiveness.”
Chief Govt Officer Brian Kwon claimed the firm planned to keep staff irrespective of what transpired to the mobile unit.
Previous month, LG Electronics said it had reorganised its cellular mobile phone division to maximize outsourcing of its minimal to mid-stop smartphones, which analysts reported represented an endeavor to reduce prices and contend with Chinese rivals.
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(Reporting by Heekyong Yang and Joyce Lee Modifying by Tom Hogue and Stephen Coates)
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