in 2021 it will pay less attention to its cheaper mobiles


The cheapest LG phones will not be manufactured by LG: a subcontractor will do it.

LG needs a change in strategy to make its mobile division return to profit. And one of his plans is to not devoting as many resources to the cheapest devices that make up its catalog.

For this, according to Reuters, LG would have decided commission the production of your most affordable terminals to an external company outsourced.

Thus, the company can reduce costs production of its mid-range and low-end terminals, with the aim of compete with rivals from China.

Cheap LG mobiles will not be manufactured by LG

Back of LG Wing

The back of the LG Wing.

LG isn't the first company to turn to outsourced companies to make its phones. We have already seen how firms like Samsung did the same with some of their most affordable terminals, and the truth is that it is a very common technique within the industry.

In any case, this move will be of great importance to LG since the company has been reporting losses for 22 consecutive quarters with its mobile division. Therefore, the process of design and manufacture of smartphones is carried out by another company, it could involve a significant cost savings facing the South Korean firm.

In addition to that, the company has taken the opportunity to eliminate some of the research and production charges of the company, and for relocate some employees. One of the goals is focus your efforts on research and development applied to range smartphones premium such as the LG Velvet and LG Wing, the latter being a clear example of the progress made by the company in recent years.