2021-03-01

LG Tired of Losing Money on Phones

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Reuters:

LG Electronics said on Monday it had reorganised its mobile phone division to increase outsourcing of its low to mid-end smartphones, which analysts said represented an attempt to cut costs and compete with Chinese rivals.

LG’s mobile communications business, which has reported an operating loss for 22 consecutive quarters, has created a new management title for original design manufacture (ODM), a spokeswoman for the South Korean company said.

22 consecutive quarters means every single quarter for five and a half years. When LG last turned a profit selling phones in a quarter, the current iPhone was the iPhone 6.