In Q3 2020, LG delivered 6.5 million smartphones, down 7.2 million from the same quarter a year earlier. According to The Korean Herald, CEO Kwon Bong-seok has told employees in an internal memo that significant changes are coming, with the company losing around 5 trillion won ($4.5 billion) over the last five years and holding only a two percent global market share.

Since the competition for mobile devices in the global market is becoming fiercer, it is time for LG to make a cold decision and make the best choice, “Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice,” “The company is considering all possible measures, including the sale, withdrawal, and downsizing of the smartphone business.”

LG has reported to The Verge the validity of the memo. “LG Electronics management is committed to making whatever decision is necessary to resolve its mobile business challenges in 2021,” said a spokesman for LG. “As of today, nothing has been finalized.”

The news comes after the Korean site The Elec reported earlier this month that LG was expected to announce its departure from the market for smartphones. Ken Hong, the company’s global consumer technology communicator, called the story “completely false and without merit. I won’t even justify that rumor with a statement”. The business has never been afraid to innovate in an industry where the new flagships seem to deliver few upgrades over their predecessors, from the LG G5 and its modular slot to the dual-screen LG G8X ThinQ and swiveling LG Wing. But the creativity has not translated into a healthy bottom line: for the last 23 consecutive years, LG’s smartphone company has reported operating losses.