Korean technology giant LG Electronics may have finally decided to give up its phone business a bit. LG's annual revenue from mobile phones in 2018 amounted to just $ 7.08 billion, and liabilities exceeded $ 700 million, covering operating costs. It is reported that the South Korean company will suspend the production of its mobile phones in Korea.
According to a Yonhap news agency, the phones will be manufactured at an existing factory in Vietnam. The report quoted an unnamed source who said that LG’s decision to move the production of phones to Vietnam was supposed to help turn into a hesitant smartphone business.
See also: LG announces record profit for 2018, despite weak mobile phone division
LG Electronics declined to comment on the report, but it seems that LG is cutting its mobile phone business. Over the past seven quarters, businesses have experienced annual recessions. Currently, LG has manufacturing facilities for smartphones in South Korea, China, Vietnam, Brazil, and India. We cannot say why the Korean factory was closed, but the factory mainly produces high-quality models. This accounts for only 10% to 20% of the total smartphone production. Perhaps the plant in Vietnam could combine the production of flagship models with other mid-level and budget models.
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