After a series of losses in smartphone sales and the loss of a considerable share of the market, LG must change its strategy. The brand will outsource the manufacturing of entry-level cell phones. The goal is to focus the company's efforts on more expensive devices.

The idea is to make the production of these simpler models available to Chinese companies, similar to what Samsung already does with some devices. Despite this, the devices will continue to be branded and distributed by LG, in addition to the manufacturer's quality guarantee.

According to the Reuters news agency, LG knows that it will be difficult to beat brands like Xiaomi and Oppo with entry-level cell phones, even by reducing costs, as these companies are already consolidated in the market in a broader way.

Strategy Analytics shows that in the first quarter of 2013, LG was the third largest cellphone manufacturer in the world. Today, the company does not even occupy the top 7, losing a large audience to Chinese companies and accumulating operating losses for 22 consecutive quarters.

New strategy

Therefore, the manufacturer must work on devices such as the LG Velvet and Lg wing, which have not yet had significant sales figures, but were well received by critics and highlighted the brand's name.

Unlike them, LG's recently launched entry-level and mid-range phones have failed to stand out. With outsourcing, LG will only have to put its own brand on the devices, leaving the design and production to Chinese companies.

One of the next releases scheduled by LG is the Stylo 7. The model, which should be released next year, is part of LG's line of the same name, which includes a pen (stylus) to support the cell phone's interaction screen. Stylo 6 It was an entry-level mid-range cell phone, but it is not yet possible to determine the price that the new model will have.

Through which channels you reach those people, classic and out of the box. Reuters