Next to the upcoming evo G1 OLED TV, the LG Rollable was the most exciting thing at LG's CES presentation. Now, however, it appears that this expandable phone may not be commercially available.

Sources told the Korea Herald that the LG Rollable handset may be abandoned as is as the company considers its future in the smartphone world.

According to the report, LG is "open to all possibilities" for the Rollable smartphone, but one of those possibilities includes discontinuing development. The company is said to be reeling from the commercial failure of the LG Wing handset. The terminal struggled to attract commercial interest and sold only 100,000 units.

Since LG's Rollable is likely to be one of the more expensive on the market, the company is understandably wary that even if it receives positive reviews, it will have difficulty selling enough units to justify the effort.

Nevertheless, the interest generated by Rollable Technology could also help LG if it is considering selling its mobile business. An "industry insider" told the Korea Herald that the phone could be used to extract a higher price from a potential buyer. The question is whether the business will fetch a higher price with the phone out in the world as a proven concept, or whether it still remains a prototype with commercial potential.

News that LG may exit the smartphone market surfaced last week. CEO Bong-Seok Kwon sent a message to all employees on Wednesday, indicating that change is underway but assuring employees that there will be no job losses. The smartphone division has posted operating losses for 23 consecutive quarters and has lost $4.5 billion over the past five years.

Even if LG does not release a rollable phone, the technology will live on in some form. The company is first using similar technology in its high-end rollable OLED TVs. And while no phones with such a form factor exist yet, TCL has plans in this area for those who have been unable to decide on their next phone design.