LG moves smartphone production to Vietnam as a last resort before exiting the market

To try to save the smartphone division, LG will take the production of terminals to Vietnam, the last step before leaving the market.

Smartphone sales worldwide are slowing down in a notorious way, due to increasingly absurd prices. This is affecting all brands, who despite 'innovating', see their product sales reduced. Some are making a move to cut costs and maximize profits. One of these is LG, which would move its plants from South Korea to Vietnam. Movement that will drastically reduce the cost of manufacturing terminals. The reason is that the company has been in losses for several quarters and its relevance in the market is minimal.

Vietnam will be the country where LG will produce its smartphones

LG's problem is quite important and quite reminiscent of Sony's. The company does not offer interesting or relevant products, which are priced absurdly. High prices for the components and features offered by their terminals, which weigh on sales. LG has never been a leader in the smartphone market, but its presence is diluted by off-market prices.

This move only confirms LG's large cuts in the smartphone market. It is the company's last cartridge before exiting the mobile phone market. The company launched the LG G8 ThinQ, its top-of-the-range terminal that has been a sales disaster. Among other reasons, the terminal adds features that do not interest anyone, such as control of the screen by hand gestures. Such a system is actually slower than using the terminal directly with the data. Higher prices than competitive top-of-the-range terminals have also affected them.

A move that may not solve LG's problems in this market. We see how the smartphone market is absurdly saturated with terminals. There are a brutal number of Chinese makes and models, sub-brands and manufacturers with prices that are impossible to match. Not to mention that users are already changing every two for three terminals.

Source: GSMA