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LG will outsource low to mid-range models, but continue designing high-end phones in-house to try turn a profit

LG is hoping its latest mobile division restructure will turn around its smartphone fortunes. (Image: Yonhap)
LG is hoping its latest mobile division restructure will turn around its smartphone fortunes. (Image: Yonhap)
It’s no secret that LG has been struggling to make a profit out of its mobile division. In its latest move to stem the hemorrhaging the company has announced a restructure which will see it outsource the design and manufacture of both its low and mid-range phones for the first time.
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LG makes some excellent smartphones, but it has now seen 22 consecutive quarters without making a profit from its mobile division. Unsurprisingly, this has been acting as a drag on LG’s otherwise strong overall performance despite many different attempts to try to turn things around. LG has now announced that its latest turnaround strategy will see the company hand off the design and manufacture of its low-end and mid-range phones to third parties.

This leaves LG designing and making only its high-end and upper mid-range models in house. As a result of the restructure, LG has consolidated its staffing arrangements with some research and production positions abolished and others reorganized. The aim of the initiative is to compete more effectively with the Chinese competition by business costs while continuing to sell rebranded phones under the LG banner so it still addresses all parts of the market.

At this stage, there is no suggestion that LG plans to pull the pin on its exciting Explorer Project smartphones, the first of which is the experimental LG Wing. The second in the series is expected to be the first rollable smartphone from the company, which holds strong potential depending on its pricing. To help keep the pricing down on the Wing, LG fitted it with Qualcomm's mid-range Snapdragon 765G instead of the Snapdragon 865. That said, LG is expected to launch high-end smartphone with Qualcomm's 2021 flagship chipset, the Snapdragon 888.

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Sanjiv Sathiah
Sanjiv Sathiah - Senior Tech Writer - 1345 articles published on Notebookcheck since 2017
I have been writing about consumer technology over the past ten years, previously with the former MacNN and Electronista, and now Notebookcheck since 2017. My first computer was an Apple ][c and this sparked a passion for Apple, but also technology in general. In the past decade, I’ve become increasingly platform agnostic and love to get my hands on and explore as much technology as I can get my hand on. Whether it is Windows, Mac, iOS, Android, Linux, Nintendo, Xbox, or PlayStation, each has plenty to offer and has given me great joy exploring them all. I was drawn to writing about tech because I love learning about the latest devices and also sharing whatever insights my experience can bring to the site and its readership.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 12 > LG will outsource low to mid-range models, but continue designing high-end phones in-house to try turn a profit
Sanjiv Sathiah, 2020-12- 8 (Update: 2020-12- 8)