LG Converting Smartphone Factories Into Home Appliances Plants: Here's Why

LG Electronics is reportedly converting its smartphone manufacturing lines into home appliances product lines. This development comes after the company shut down its smartphone business due to heavy losses. However, LG said that it will provide software updates to all existing customers.

LG used to manufacture its smartphone in the Vietnam factory; however, that line will now turn into home appliances. Notably, the company has already moved some of its production capacity to the Vietnam factory so that its workers remain employed.

LG Stops Smartphone Production

The tech giant stopped its production lines this week, reports Asia Business Daily. In April this year, the company announced that it is shutting down its smartphone business; however, it would take some time to do that as it wants to fulfil all obligations of the partners.

The report claims that the company might stop producing its latest devices, such as the LG Velvet and the LG Wing. But, it will continue to support the existing devices at least for some time. In fact, the company also promised that it will continue to provide software support to premium smartphones, including the Android 11, 12, and 13 updates.

"LG's strategic decision to exit the competitive mobile phone sector will enable the company to focus resources in growth areas, such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions," the company said.

Meanwhile, the report states that the LG Rollable and the Velvet 2 Pro smartphones are only available for employees in South Korea. The devices are available at the discounted rates along with six months warranty. But, these devices are not eligible for upgrades as both come under inventory.

LG Home Appliances Sales

Even though LG was not good at smartphones, its home appliances business is doing well. The company has managed to post record sales in Q2 as per The Korea Herald. In fact, the report states that LG surpassed Whirlpool in Q1 and Q2. In addition, the analysts said that LG might remain number one in the rest of the quarters.

The Chinese smartphone makers have already captured the smartphone market because of the latest features at affordable prices, which is why the LG decision seems good as it is leading in the home appliances segment.