LG Electronics intends to suspend the production of smartphones in South Korea, as reported by network sources, citing information received from knowledgeable persons.
LG's mobile business has been showing negative results for several quarters in a row. The curtailment of the production of cellular devices in South Korea is expected to reduce costs - production will be moved to Vietnam.
It is noted that LG Electronics currently has smartphone manufacturing facilities in South Korea, Vietnam, China, India and Brazil. At the same time, the South Korean plant produces mainly high-end models. This company is responsible for the supply of 10–20 percent of all LG cellular devices produced.
It is planned to transfer the production of smartphones from South Korea to Vietnam within this year. LG itself, however, does not comment on the situation.
Let us add that the global market for “smart” cellular devices is shrinking. In 2018, International Data Corporation (IDC) estimates sales of approximately 1,4 billion units. This is 4,1% less than the 2017 result.
Source: 3dnews.ru