LG is shaking things up in its mobile division once more. It confirmed to Reuters it will increase outsourcing of its low- and mid-range smartphones. Third-party companies will design and build more of the devices, and LG will slap its label on the phones.
The company still plans to make its own high-end devices. Increased outsourcing will free up more in-house research and production resources to focus on premium smartphones. LG has reassigned some employees, and it cut some production and R&D positions. When it revealed the Wing, LG said it would keep experimenting with smartphone design even if that quirky device was a total flop.
LG's mobile communications division has been running at a loss for the last 22 quarters, so attempts to cut costs aren't too surprising. The company has fallen behind the likes of Huawei (which recently sold its budget Honor phone brand), Xiaomi, Oppo and Vivo in the smartphone market, according to analysts. The reorganization appears to be an attempt to better compete with those companies, less so with Apple and Samsung.