South Korean tech giants will further outsource low-to-medium smartphones, according to a statement released by LG on Monday. The move was made to further reduce costs following the disappointing earnings report that the mobile division had been in the red for 22 consecutive quarters.
LG plans to contract with Original Design Manufacturer (ODM) to manufacture low-priced mobile phones, and for self-developed entry-level mobile phones, it has already chosen to increase its investment in premium devices. We are reducing the number of projects.
Competition with Chinese smartphone brands has forced LG to take this new step. We hope this will pay off by reducing R & D costs that are only relevant to the development of low-cost smartphones.