LG has apparently decided to outsource the production of its LG Gram flagship series of thin and light laptops to an ODM (Original Design Manufacturer). This means that a different company will be making its high-end notebooks, moving away from in-house production.
LG Gram will be made by ODM going forward
According to a new report, the upcoming Gram models will be produced by Quanta’s subsidiary Dafeng. This is a Chinese ODM, which has previously made other LG Electronics products as well. Now. it will also be responsible for making mid range Ultra PC models and even the Gram 2-in-1 notebooks. An industry insider stated that the base LG Gram was manufactured in-house at LG’s Nanjing site before its recent outsourcing.
The source close to the matter added that cost reduction and improved efficiency is likely the reason for the South Korean tech giant making the shift. Reportedly, LG’s Nanjing plant faced a loss of 2.4 billion won in the third quarter of this year. So the outsourcing move could help the brand cut down on losses moving forward. In their recent financial report, LG’s unit that sells laptops and IT products also suffered a notable 20.5 billion won loss.
The company believes that slowing demand for falling demand for IT products is the main reason for this decline. For those unaware, the LG Gram 2023 series of premium laptops was released in India back in June. Similarly, the LG Gram SuperSlim OLED was also launched earlier this year as the brand’s thinnest laptop with an OLED panel.
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