LG has always set itself apart in the smartphone game by introducing quirky and outlandish ideas. From rotating devices like last year's LG Wing to modular phones like the LG G5, the Korean company always likes to do things differently. Last week at CES 2021, LG surprised us with its approach and potential, unveiling a phone that can roll.

Unfortunately, LG's rollable phone may be its last hurrah in the smartphone arena, as the company is considering a complete exit from the smartphone market.

According to the Korea Herald, Samsung CEO Kwon Bong-seok sent a message to employees on Wednesday (Jan. 20), suggesting that major changes are coming to the mobile division, and Bong-seok was not about to make any sweeping layoffs. He quickly clarified that there would be no major layoffs.

"Regardless of how the direction of our smartphone business operations change, there is no need to worry because jobs will be retained," Bong-seok said.

This suggests a significant downsizing or complete elimination of the company's smartphone division. This comes after the company had a difficult five years in the smartphone business, losing $4.5 billion.

"I can confirm that LG Electronics is exploring various options given the headwinds facing its mobile business," an LG representative said in an e-mail exchange with Tom's Guide. 'Any further comment would be speculative. If we have any news to share, we will get back to you at that time."

This comes a year after Bong-seok promised to make LG's mobile division profitable by 2021. But then the coronavirus struck the world, upending the smartphone market from the ground up. Even companies like Apple saw smartphone sales fall, following the general downward trend of the past five years.

However, LG's market projections were far more dire. The company had posted operating losses for 23 consecutive quarters.

"The smartphone market is dangling wild profits in front of manufacturers, but only a few are claiming their wealth," says Avi Greengart, president and principal analyst at Techsponential, a market research and advisory firm.

LG's cell phone division was not only a customer for its own components and displays, but also the driving force behind the company's overall vision.

"Smartphones were supposed to be the hub of LG's AI and IoT ecosystem, connecting LG's TVs and LG's consumer electronics," Greengart says.

The reason why LG's phones do not resonate with consumers can be explained by multiple reasons. Competition with Apple and Samsung for enthusiast products is intense, and they feel that LG's products are lacking.

LG's premium V series, like last year's V60 ThinQ, struggled for years to compete with Samsung in both design and camera performance; LG dropped the V series and came out with Velvet, a more affordable option with higher-end specs. However, it too was beaten by models like the OnePlus 8.

If LG couldn't compete on performance and design, the only differentiator was novelty. And while rotating phones like the LG Wing are cool, they attract a niche demographic, willing to overlook certain spec shortcomings for the sake of something offbeat.

Currently, LG has less than 2% of the smartphone market share, which is unfortunate because LG is putting out some exciting products. If LG could do a better job of finding ways to stay competitive in the mid-range against companies like OnePlus while competing in the geek segment and offering products that excite, the company might find customers. But if LG exits the field, the market will lose one of its key innovators.