LG basically reinvented its smartphone business this year by dropping the LG G series in favor of the LG Velvet. The device is quite confusing since there are two variants with 5G and an LTE variant sporting the 2018’s Snapdragon 845 chipset. However, we think that the company is achieving good results with it since Velvet 2 is already in the plans. Apart from the Velvet, the company also introduced the LG Wing which surely is one of the coolest phones released this year. Now, the firm wants to expand its business by partnering with ODMs.
LG wants to expand its ties with ODMs in the next year. If you recall, some of the company’s smartphones from 2018 were actually made by ODMs. Now, a report from South-Korea states that the company will outsource more devices from ODMs next year. That includes the possible LG Velvet 2.
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The LG Velvet 2 may come by the hands of an ODM
According to a report from TheElec, ODMs will make more smartphones in 2021. The report explicitly mentions that by 2021. Apparently, ODMs will account for 70% of LG’s Smartphone production. In case you don’t know ODM meaning, it stands for Original Design Manufacturer. It’s a company that designs and manufactures a product that is ultimately sold by the other. In other words, the next LG Velvet will not actually be made by LG hands, but by an ODM.
Currently, LG has strong ties with some ODM partners like Wingtech, Huaqin, and Longcheer in China. Interestingly enough, the report also states that LG began seeking ODMs in 2018. Two years ago, only 10% of the LG smartphones were made by contract companies. The number gradually increased to 30%, and 60% in 2019 and 2020. Apparently, LG plans are going quite well and the company may expand its presence in the market thanks to ODMs. Of course, only time will tell if this will prove to be a successful strategy.
LG will only produce its flagship Rainbow and a rollable smartphone
Besides the LG Velvet 2, the company will also announce the successors of LG Q92 and LG Stylo in the next year. Apparently, these devices will also be made by ODMs. So far, the only devices made by LG in the next year will be the flagship Rainbow, and a rollable device codenamed B Project. The Rainbow will be the spiritual successor of the LG V series with a high-end Snapdragon chipset, 5G, and other compelling specifications.
We are curious to see how the new strategy will perform in 2021.
If you're going to insist on using an acronym in your article, you should define it at least once. Not everyone knows what an "ODM" is.