LG will now focus solely on R&D and self-manufacture of high-end smartphones. Low-cost and mid-range devices under LG brand will be undertaken by ODM partners.
LG Electronics has just announced that it has started to reorganize its mobile phone segment, increasing outsourcing low to mid-range phones. An LG spokesperson also said it had dropped some research and manufacturing positions, and shuffled others.
General, LG will now focus on R&D and self-production of high-end smartphones. Low-cost and mid-range machines will be handled by ODM partners from design to production, Korean electronics firms only need to label their brands.
|LG Electronics just announced, it has started to reorganize its mobile phone segment.|
LG’s mobile business has reported losses for 22 consecutive quarters. From 3rd place in the global smartphone market in the first quarter of 2013, LG is now not even in the top 7 according to Q3 this year data.
LG is currently losing to Chinese smartphone brands such as Huawei, Xiaomi, Oppo and Vivo.
“LG is trying to add value to its low-end phones using original designs from Chinese companies,” commented Tom Kang, an expert at research firm Counterpoint.
“They know that they are competing with Chinese competitors, not Apple or Samsung,” said expert Counterpoint.
It is known that since October last year, LG has revealed plans to expand the ODM model for mid-range smartphones, instead of only applying to low-cost phones.
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