South Korean manufacturer, LG, has been struggling in the smartphone market for quite some time. A couple of months ago, the company quit the Chinese smartphone market because it couldn’t keep up with the intense competition in China. Now, according to Yonhap News Agency, LG will halt the manufacturing of smartphones in its home country, South Korea and will move the manufacturing to its plant in Vietnam.
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The source claims that the Korean phone maker needs to cut down production costs which makes it very important for its manufacturing plant to move out of South Korea. Although this information has not been officially verified, it is not surprising that LG is taking this step. For several quarters, LG has consistently posted losses in its smartphone business. It can compete with the likes of Apple and Samsung in the high-end market. The likes of Xiaomi and Huawei has a strong grip on the mid-range market while the low-end market is dominated by numerous Chinese OEMs.
For this company to bounce back to relevance, it needs some technical strategy. Just like it did in China, LG may have to quit more markets but the company will probably remain in a few lucrative markets.