As expected, LG is exiting the mobile phones business.
LG is one of the world’s largest consumer electronics companies, but the company has had a hard time competing with major players in the smartphone space like Samsung, Huawei and Apple. While the company has made some of the most interesting smartphones in recent years, that hasn’t always (or often) led to commercial success in a competitive marketplace. So LG has announced it’s done trying to compete.
LG’s phone business had been losing money for a while – over the past six years, the phone division had an operating loss of about $4.4 billion. Recently the company has been exploring options to exit the mobile space, possibly by selling its assets to another company. But unable to find a buyer after talks with several potential suitors fell through, LG decided to just cut its losses and call it quits.
The company says that will free up resources that can be focused on “growth areas,” including smart home, connected devices, electric vehicles, and business-to-business solutions. LG says it will also leverage the technology it has developed for smartphones over the past two decades toward future products including 6G devices (for whenever that becomes a thing).
You may still be able to buy existing LG phones for the next few months – LG says the wind down of its mobile phone business is expected to be finished by July 31, but some phones may still continue to be available past that time. And LG says it will continue to offer service support and software updates for those phones for some period of time (although it’s unclear how long that period will be, and LG says it will vary by region). Just don’t expect any new phones from LG moving forward.
Among other things, that means the LG Rollable smartphone the company has been teasing will probably never see the light of day, although it’s possible LG could sell its Rollable screens to other companies interested in making their own versions.
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Britain in talks with 6 firms about building gigafactories for EV batteries
Britain is in talks with six companies about building gigafactories to produce batteries for electric vehicles (EV), the Financial Times reported on Wednesday, citing people briefed on the discussions.
Car makers Ford Motor Co and Nissan Motor Co Ltd, conglomerates LG Corp and Samsung, and start-ups Britishvolt and InoBat Auto are in talks with the British government or local authorities about locations for potential factories and financial support, the report added .
(Reporting by Kanishka Singh in Bengaluru; Editing by Himani Sarkar)
EBay to sell South Korean unit for about $3.6 billion to Shinsegae, Naver
EBay Korea is the country’s third-largest e-commerce firm with market share of about 12.8% in 2020, according to Euromonitor. It operates the platforms Gmarket, Auction and G9.
Shinsegae, Naver and eBay Korea declined to comment.
Lotte Shopping had also been in the running, the Korea Economic Daily and other newspapers said, citing unnamed investment banking sources.
South Korea represents the world’s fourth largest e-commerce market. Driven by the coronavirus pandemic, e-commerce has soared to account for 35.8% of the retail market in 2020 compared with 28.6% in 2019, according to Euromonitor data.
Shinsegae and Naver formed a retail and e-commerce partnership in March by taking stakes worth 250 billion won in each other’s affiliates.
($1 = 1,117.7000 won)
(Reporting by Joyce Lee; Editing by Edwina Gibbs)
Canada launches long-awaited auction of 5G spectrum
The 3,500 MHz is a spectrum companies need to provide 5G, which requires more bandwidth to expand internet capabilities.The auction, initially scheduled for June 2020, is expected to take several weeks with Canadian government selling off 1,504 licenses in 172 service areas.
Smaller operators are going into the auction complaining that recent regulatory rulings have further tilted the scales in the favour of the country’s three biggest telecoms companies – BCE, Telus and Rogers Communications Inc – which together control around 90% of the market as a share of revenue.
Canadian mobile and internet consumers, meanwhile, have complained for years that their bills are among the world’s steepest. Prime Minister Justin Trudeau’s Liberal government has threatened to take action if the providers did not cut bills by 25%.
The last auction of the 600 MHz spectrum raised C$3.5 billion ($2.87 billion) for the government.
The companies have defended themselves, saying the prices they charge are falling.
Some 23 bidders including regional players such as Cogeco and Quebec’s Videotron are participating in the process. Shaw Communications did not apply to participate due to a $16 billion takeover bid from Rogers. Lawmakers and analysts have warned that market concentration will intensify if that acquisition proceeds.
In May, after Canada‘s telecoms regulator issued a ruling largely in favour of the big three on pricing for smaller companies’ access to broadband networks, internet service provider TekSavvy Inc withdrew from the auction, citing the decision.
Some experts say the government has been trying to level the playing field with its decision to set aside a proportion of spectrum in certain areas for smaller companies.
Gregory Taylor, a spectrum expert and associate professor at the University of Calgary, said he was pleased the government was auctioning off smaller geographic areas of coverage.
In previous auctions where the license covered whole provinces, “small providers could not participate because they could not hope to cover the range that was required in the license,” Taylor said.
Smaller geographic areas mean they have a better chance of fulfilling the requirements for the license, such as providing service to 90% of the population within five years of the issuance date.
The auction has no scheduled end date, although the federal ministry in charge of the spectrum auction has said winners would be announced within five days of bidding completion.
($1 = 1.2181 Canadian dollars)
(Reporting by Moira Warburton in Vancouver; Editing by David Gregorio)
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