LG will focus on high-end smartphones; outsourced other segments

December 8, 2020 Luisa Rey

LG has had a tough time in the smartphone market for many years. The manufacturer has already written red numbers in this division for 22 consecutive quarters. And so the manufacturer has decided to take a different approach.

Outsourcing of cheaper smartphones

LG will focus on the more expensive smartphones. It will no longer manufacture devices from the lower and middle segment itself, but will be outsourced. This saves costs. LG devices still appear in this segment, but are made by other manufacturers, so the LG logo is stuck on the devices. The suspicion is that because of the enormous competition from China; like Oppo and Xiaomi, LG feels compelled to take this step.

The story is reminiscent of that of HTC, which previously also decided to put it on the back burner. However, LG is now at least trying to concentrate on premium devices. We doubt whether this will work. LG devices are not always able to distinguish themselves. We recently discussed the Wing in the LG Wing review. Nice device, but in terms of specs, it is less well equipped for its price than the competitors. But who knows what LG has ready to put against Samsung’s Galaxy S21.