LG is shaking up its mobile phone strategy to try and regain some of its former glory.
LG says that it's reorganized its mobile phone division so that it is outsourcing more of its low-end and mid-range smartphones (via Reuters). This means its lower cost phones will be designed and manufactured by another company and then LG will put its name on those devices.
This move is meant to help cut costs when making those lower cost phones. It also helps LG to focus its in-house development and production of premium smartphones.
In addition to outsourcing production of low-end and mid-range phones, LG says that it's gotten rid of some research and production jobs and reshuffled some other positions.
LG used to be one of the top mobile device makers around. However, LG's mobile division has reported an operating loss for the past 22 quarters and in Q3 2020, it was not among the top seven smartphone makers in the world. It's been passed by Chinese smartphone makers like Huawei, Xiaomi, Oppo, and Vivo.
We'll have to wait and see what LG comes out with for its new premium phones in 2021, but one thing we do know is that the smartphone market is highly competitive and it's hard to make a device that stands out and can sell well. We're looking forward to seeing what LG cooks up for next year.