LG Electronics to suspend mobile phones production in South Korea this year: Yonhap
Yonhap reported that LG decided to move its local handset production to Vietnam to help turn around the money-losing smartphones division.
South Korea’s LG Electronics plans to suspend manufacturing of its loss-making mobile phones in the country this year and shift the production to its existing plant in Vietnam, Yonhap News Agency said.
Citing an unidentified source, Yonhap reported that LG decided to move its local handset production to Vietnam to help turn around the money-losing smartphones division.
LG’s mobile business, in the red for seven quarters, and intensifying price competition in the global TV market likely weighed on its first-quarter earnings, analysts have said.
LG Electronics declined to comment on the report.
It has production bases for smartphones in South Korea, China, Vietnam, Brazil and India, and the South Korean factory mainly manufactures high-end models, accounting for 10 per cent to 20 per cent of the firm’s total smartphone output.