LG has really been feeling the pinch the smartphone market for quite some time. It has made some serious attempts to improve its fortunes but they’re not quite yielded the results that it requires. LG isn’t giving up on the business, though, and is making an effort to reform and optimize it. This may include discontinuing smartphone production in its home country of South Korea.
According to media reports, LG is planning to suspend its smartphone manufacturing operations in South Korea this year. This means that the capacity wrapped up in its home country will be moved somewhere where the manufacturing costs are lower. The report mentions that LG will shift the production quota to its existing plant in Vietnam, a country where Samsung also manufacturers many of its devices.
LG’s smartphone business has been in the red for seven quarters so it’s clear that the company does need to make some tough decisions in order to optimize the business. It doesn’t help that the smartphone market is fiercely competitive and even its local rival Samsung is feeling the pinch from the likes of Huawei.
LG hasn’t officially commented on the reports of discontinuing smartphone production in South Korea just yet.
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