LG looking to outsource low-end phones, focus on flagships

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LG Electronics has reorganized its phone division according to Reuters, which has been operating at a loss for 22 consecutive quarters. The company has decided to outsource the design and manufacture of smartphones, then slapping its logo on these devices.

Thanks to Chinese manufacturers who love to produce budget phones (Xiaomi and Oppo), LG has continuously been undercut. That’s why it’s a great idea to send device production to ODMs(Original Device Manufacturers) that the Chinese firms use to produce their budget phones.

The presumed goal with this move is to focus on producing better flagship phones due to not having to focus on budget phones, as evidenced by the fact that LG has dropped many research positions and reshuffled their R&D to focus on the production of premium phones.

LG Velvet Banner

Here at AndroidGuys, we were actually quite impressed with the upper-midrange LG Velvet. Maybe LG will find more success focusing on such interesting devices as this.

 

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