In an effort to restructure and address its downward trend in the field of smartphones the LG made the decision to stop manufacturing appliances in Korean factories.
Η The news was first broadcast by Korean media, then reproduced by Reuters and finally the Korean company itself hastened to confirm. According to the decisions taken, LG will "move" the Pyeongtaek factory in Korea to the Haiphong Campus factory in Vietnam. The staff of the first factory will be relocated to the home appliance factory in Changwon, also in Korea.
According to Reuters, LG's production from Korean factories focuses mainly on the company's flagship devices, ie it covers 10-20% of total production. In fact, it is noted that LG considered it an important issue for its image for its top devices to be manufactured in Korean factories, so it is understood that the decision to end domestic production was not taken lightly.
However, it seems that the chronic inability of LG Mobile to return to profitability forced the parent company to take immediate measures to reduce production costs. Obviously, the price increase solution would not be a real success as LG is constantly losing ground to other Android device makers offering better cameras, bigger batteries and higher performance.
The Verge website notes that it may not be the end of LG Electronics' mobile division, but it may be the beginning of the end. The Korean company holds the third most privileged position in the stores of telecommunications service providers in the US, behind Apple and Samsung. It also has a particularly loyal audience in Korea, however the inability to produce truly competitive devices led to the above decision.
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