Stop us if you happen to’ve heard this one earlier than. According to a brand new Reuters report, LG is trying to “reorganize” its long-struggling cell phone division in yet one more attempt to improve its profitability (or fairly discover the precise angle to really flip a revenue for a change).
What’s totally different about this latest strategic change in contrast to the umpteen related bulletins in the previous is that LG plans to put its cash the place its mouth is for as soon as. Or fairly preserve a number of the cash it used to throw out the window on largely unsuccessful and utterly unprofitable “low to mid-end smartphones.”
While budget-friendly LG-branded handsets will proceed to be a factor, the Korea-based firm would not intend to really produce these anymore. Instead, an unnamed ODM (authentic design producer) will probably be employed to handle that activity at a presumably decrease price, permitting
LG to both cut back its costs or beef up these (nonexistent) income. Possibly, a little bit of each.
The aim is to higher compete in opposition to the likes of Huawei, Xiaomi, Oppo, and Vivo, which have been consuming away on the gross sales numbers of OEMs (authentic tools producers) like LG, HTC, or Sony for a number of years now with cheaper and oftentimes superior merchandise.
Speaking of, LG additionally appears targeted on
avoiding Sony and particularly
HTC’s destiny by paying extra consideration to premium units just like the unconventional Wing and lovely
Velvet. The analysis, improvement, design, and manufacturing of most of these higher mid-range and high-end merchandise will stay a wholly in-house affair, at the least for the foreseeable future, which could assist LG keep away from repeats of the various strategic errors that in the end buried each the G and V sequence.
Strictly talking from a low to mid-end market perspective, nonetheless, analysts aren’t significantly optimistic about LG’s possibilities of discovering success anytime quickly, pointing to the far superior advertising abilities (and deep pockets) of the aforementioned Chinese handset distributors as a key differentiator.
Clearly, desperate occasions name for desperate measures, however it stays to be seen if this particular move will show impressed sufficient to proper LG’s slowly sinking ship.
(This story has not been edited by Newslivenation employees and is auto-generated from a syndicated feed.)