‘Vietnamese ODM Vingroup offers on part of LG’s smartphone division’
The Vietnamese Original Device Manufacturer Vingroup would have made the most interesting offer for a part of LG’s smartphone division. This week it was announced that LG is considering a sale of its smartphone branch.
Vingroup, a conglomerate active in many different product categories, is said to be particularly interested in the US part of LG’s smartphone division, Business Korea reports citing its own sources. In this way, the company wants to acquire a starting position in the American market.
LG would probably sell its smartphone branch in parts. According to Business Korea, Vingroup has been making smartphones for LG since 2018. That happens with Vingroup as ODM. A company develops the smartphone, buys the components and screws them together, but LG sticks its logo on it and does the marketing.
LG is considering stopping making smartphones. The South Korean manufacturer has been losing money with its smartphone division for years. Last year it became clear that LG wanted to purchase more phones from ODMs in 2021 and would only want to develop devices such as the Wing and Rollable itself.
The company reported on Wednesday that “competition in the global mobile device market is becoming increasingly fierce.” “It’s time for LG to judge and make the best choice,” the company said. LG would consider “all possible options”, including selling its smartphone division or a complete withdrawal from the sector. Reducing its mobile branch is also mentioned as an option.
LG will launch its Rollable smartphone later this year