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.

RELATED:

• LG ProBeam BU53RG 4K short throw projector with up to 5,000 ANSI lumens brightness launched
• LG Smart Monitor unveiled in 32″ and 27″ sizes with webOS 23
• Get $50 Off on the latest Xiaomi Redmi K70 Pro
• Xiaomi 13 Ultra Premium Camera Phone is now only $799
• Vivo iQOO 12 Pro: Save $100 on the flagship gaming phone
• Download the best GCam APK for Samsung Galaxy S23 Ultra

The post LG Gram will now be made by a Chinese ODM appeared first on Gizmochina.

Korean company LG Electronics announced on Monday that it had done a reorganization of its mobile phone division to increase efficiency and sales by outsourcing its low to mid-end smartphones, in a direct move analysts to significantly cut costs and compete with its competitors.

The fortunes of the mobile communications subsidiary of the company have been on a downward spiral for over five years, with operating losses reported for 22 consecutive quarters, and this has led to a new management direction and the choice of Original Design Manufacturer (ODM), a spokeswoman for the company said (via).

LG had said last year that it will expand ODM to its mid-range smartphones from just low-end smartphones. The company will now outsource the design and manufacture of its smartphones, while still maintaining the LG brand name on the products.

LG has also jettisoned some of its research and production positions and realigned others to fit with its new business model, which may imply redundancy for a segment of the company’s staff. The move is part of plans to rely more on LG’s in-house research and development and production of high-end smartphones, with low and mid-end ones to be produced by ODM.

In 2013 LG was ranked No. 3 in the global smartphone market by Strategy Analytics, seven years later, the company is not even among the top seven OEMs, indicating massive regression in turnover and market share over this period, with Chinese brands like Huawei, Xiaomi, Oppo and Vivo, taking preeminent positions at the top, research firm Counterpoint stated.

Further illuminating the scenario, the research firm states that LG knows it is competing with Chinese competitors, not Apple or Samsung, and it is seeking to add to its lower-end models’ value by using Chinese original design manufacturers, according to Counterpoint analyst, Tom Kang.

Going further, Kang states that even if LG outsources the production of that segment of its products, without the requisite marketing ability, it is bound to come short against Chinese tech firms who have a better marketing strategy.

UP NEXT: Vivo Y52s with 90Hz screen, Dimensity 720, 48MP dual cameras and 5,000mAh battery launched

The post LG is reportedly planning to outsource lower-end phone manufacturing to cut costs appeared first on Gizmochina.

Because of the COVID-19 pandemic, Samsung has halted its Original Design Manufacturing (ODM) operations. With the situation now getting normal, the company has resumed ODM operations for its business.

As per the report, Samsung is planning to produce around 24 million to 26 million units of smartphones through ODM partners this year. The numbers represent about 10 percent of the company’s total annual smartphone production.

EDITOR’S PICK: Brazilian Supreme Court to determine Apple’s rights for the usage of iPhone trademark

It adds that the South Korean giant has planned for ODM to account for 20 percent of the total production but has now lowered the expectations because of the COVID-19 pandemic. For the period of two months — February and March, Samsung’s ODM partners Wingtech and Huaqin saw a drop of 50 percent in their production.

Last year, ODM partners had produced around 30 million units of smartphones for Samsung, which were well received in the targeted market. The company could have sold more units but the partners couldn’t handle the jump in orders.

Currently, China-based Wingtech is making the Samsung Galaxy M01s smartphone for the company, which was launched last month, targeted towards the Asian market. As the name indicates, the phone is a variant of Galaxy M01.

UP NEXT: Apple Watch and iPad reportedly launching in September while iPhone 12 delayed to October

The post Samsung resumes smartphone ODM operations, expects it to account for 10% of total units appeared first on Gizmochina.

In recent times, many smartphone makers have relied on ODMs to design and produce their smartphone offerings. Known brands like Lenovo, Samsung, Oppo, and more have been known to employ their services. Now, Wingtech, the largest ODM for smartphones and other IoT products has just patented a new device, which could be an upcoming Xiaomi Mi Mix series smartphone, as reported by LetsGoDigital.

Wingtech is a known ODM that has designed and produced smartphone, smartwatches, tablets, and more. Chinese brands like Huawei and Xiaomi are a few of its important customers as well. So, if the device was made for Xiaomi, it would not come as a surprise. Although, this has not been confirmed and is just speculation at the moment.

Editor’s Pick: [Update] Xiaomi Mi 10 Extreme Commemorative Edition to debut on August 11, 55W wireless charging expected

The reason why it seems to be made for Xiaomi is its form factor and design. It resembles the Mi Mix Alpha from the front, while a recent Xiaomi patent had revealed a Mi Mix device with one curved edge that was completely wrapped by a display that even extends to the rear panel. Interestingly, the front triple selfie shooter is housed on a pop up mechanism along with an LED flash. The patent was filed with the WIPO (World Intellectual Property Office) and has just recently been published.

According to reports, Xiaomi sources over 75 percent of its designs through ODMs. Furthermore, Wingtech and Xiaomi have had a history of cooperation. A design that resembles some of the latter’s concept devices might be an indicator of a commercial launch with the help of the former’s expertise in the field. However, this is still unconfirmed so take it with a pinch of salt for now.

UP NEXT: Nokia aims to block US imports of Lenovo computers, ITC to investigate patent infringement allegations

The post New Wingtech patent might be for a Xiaomi device with a triple pop up selfie camera appeared first on Gizmochina.

OnePlus has gained a reputation over the years for launching premium smartphones at affordable prices. The brand emerged last year among the top 5 OEMs in the premium phone segment and also became the number one premium phone brand in India. However, OnePlus seems to have got other plans different from consolidating on the success of its sole high-end phone market. A recent rumour emanating from China’s Weibo tips the Chinese company of planning to effect major changes in its market strategy. The rumour quotes industry sources to have disclosed that OnePlus will release ODM orders this year (2020). The products are said to include 4G phones and 5G phones. This year’s OnePlus 8 series left some fans disappointed as a result of the high price tags of the models which many complained deviates from the brand’s cheap flagship strategy. Perhaps, to make up for this, the company will launch mid-range and low-end smartphones using an original design manufacturer.

An ODM is a company that designs and manufactures a product, as specified, that is eventually rebranded by another firm for sale. This business strategy is mainly used by Huawei and Xiaomi who deploy ODM companies such as Wentai, Huaqin, Longqi and Zhongnuo for the Honor brand. By 2018-2019, the ODM market had undergone great changes. Three of the most important mobile phone manufacturers have begun to invest heavily in ODM projects in China, that is, Samsung, Nokia and OPPO. In 2018, OPPO began to release ODM products while Samsung began ODM release in 2019 in China and other markets. This move is seen as a cost-saving strategy which enabled the Korean company to code down its factories in China.

OnePlus is yet to confirm this rumour so take it with a grain of salt.

UP NEXT: HiSense F50 5G debuts with Unisoc chip for 2,199 Yuan (~$310) in China

(source)

The post OnePlus rumoured to release ODM orders, including 4G & 5G phones this year appeared first on Gizmochina.

Korean tech giant LG Electronics has trimmed down its smartphone production in recent times. The company had even outsourced the production of its budget models using the ODM model. The company has now announced plans to further expand the production of its mid-range models using ODM.

EDITOR’S PICK: First Samples from the 108MP Mi Mix Alpha is here & we are not impressed!

In a statement reportedly made in a conference call after the release of its Q3 revenue, Jae-Seok Shin, head of the project management team at LG Electronics’ Mobile Communications Division, said, “We will use the ODM as a lever for improving the cost structure of the smartphone business.” He stated further; “We have been making efforts to raise cost competitiveness by reducing fixed costs and optimizing production sites.” “We will expand the application of ODM from existing low-end smartphones to mid-range phones,” he said.

An ODM (original design manufacturer) is a company that takes the original specifications of another company or individual and builds the design to the product specifications. Samsung is also using an ODM model on some of its mid-range models in China where sales have been on the low. The model enables the company to significantly cut production cost and be in a good position to offer competitive prices for its phone. LG will also benefit from the ODM arrangement in the same way.

UP NEXT: OPPO Reno2 Z and Reno2 F prices slashed by Rs, 2000 (~$28) in India

(source)

The post LG’s low-end and mid-range phones will be made by ODMs appeared first on Gizmochina.

Korean electronics giant, Samsung is currently the world’s largest smartphone brand. However, it is facing tough competition from Chinese smartphone makers like Huawei, Xiaomi and BBK electronics. In order to sustain the deluge of aggressively priced handsets originating from China, Samsung is relying on giving more orders to its ODM partners.

According to a Korea-based Newsis News Agency report, in the year 2020, about 60 million units or 20% of smartphone that Samsung is predicted to sell will be manufactured by its ODM partners in China. In comparison, ODM produced units sold by Samsung in the year 2019 will only be 30-40 million, about 10% of overall sales.

The Korean company started giving ODM orders to China-based Wingtech Group in September 2018 and expanded its outsourcing by adding Huaqin Telecom Technology as its new partner in July 2019, the report added.

What is an ODM?

An ODM (original design manufacturer) is a company that takes the original specifications of another company or individual and builds the design to the product specifications. ODMs make it possible for a company to get a product to market without having to completely design the hardware and without investing in production facilities.

The ODM supplies manufacturing capacity. The company that created the specification typically retains ownership of the design. Both the Samsung Galaxy A10s and Galaxy A10 are examples of ODM smartphones.

Editor’s Pick: Realme Android 10 roadmap for China confirmed

While Samsung continues to flourish in the flagship smartphone segment, previously mentioned Chinese smartphone makers have been eating up Samsung’s market share in the budget segment at a rapid rate. Due to cut-throat competition, profit margins in the entry-level segment are considerably low in comparison to high-end devices, which is where Samsung would want to channelise most of its energy.

Having said that, these low profit returning smartphones make up a large percentage of overall sales and Samsung cannot skip on this segment completely. Subsequently, with ODM smartphones that would ideally require a limited amount of resources from Samsung, the company can continue to focus on premium devices which is where the profits are.

(via)

UP NEXT: Huawei’s market share in China increases by 66% YoY in Q3 2019

The post Samsung will boost ODM smartphone orders in 2020 to stay ahead of Chinese competitors appeared first on Gizmochina.

A new report from South Korea indicates that Samsung will be shutting down its last smartphone manufacturing plant in China at the end of the month. The plant located in the Guangdong province of China first started producing phones on December 1992. It is presently the only functional Samsung production plant in China and around June this year, the company scaled down production at the plant with reports of workers getting laid off.

The steady rise to prominence of local phone manufacturers in China signalled the decline of Samsung phones in what was one of its strongholds. Samsung controlled more than 20% share of the market in the hay days but as Chinese brands continue to surge in growth, the Korean company continued to lose market share. The local OEMs like OPPO, Vivo, Xiaomi and others were able to gain ground against the global market leader by offering premium models at affordable prices. Samsung’s market share in China was below 1% as at the end of 2018.

EDITOR’S PICK: First Samples from the 108MP Mi Mix Alpha is here & we are not impressed!

In recent times, Samsung has made efforts to reclaim its lost glory in the Chinese market and other markets like India where Chinese OEMs have grabbed a chunk of the market share for her hands. The company recently shifted its focus to the midrange segment with the Galaxy A series and other premium but affordable models. The Korean tech giant is also exploiting the use of ODM to manufacture its phones for the local market in a bid to cut the cost of production and thus bring down the retail price. The Galaxy A6s and A9s were the first devices to be manufactured by an ODM.

Samsung still continues production of smartphones in its plants in Thailand and Vietnam, though. However, it remains to be seen if there would be any chance of a return to China in the future. Time will tell.

UP NEXT: Xiaomi launches a Mini Head Massager priced at 199 yuan ($28)

(source)

The post Samsung reportedly shutting down its last production plant in China this month appeared first on Gizmochina.

There are rumours that Samsung is in talks that would see it outsource the production of the firm’s mid-range and low-end Galaxy phones in China. The Korean giant is reportedly in talks with Original Design Manufacturer (ODM) Wintech, the company responsible for the manufacture of Xiaomi’s phones. If a deal is sealed, Wintech would be responsible

Reports have it that company execs of Samsung’s mobile business led by Executive Vice President Roh Tae-moon visited China’s Wintech to discuss the possibility of manufacturing Samsung phones at Wintech’s factory. A deal would see Samsung phones bearing the company’s logo but manufactured by Wintech. Of course, the models will have to meet Samsung’s quality standards.

Related: Samsung’s Market Share in China & India Declining Steadily

This move could be as a result of the company’s declining market share in China. Such a move could also result in Samsung models becoming competitively priced since parts will be sourced locally. It would also reduce the manufcaturing cost Samsung incurs while it diverts its attention to planning a recovery pathway for its Chinese business. However, Samsung is yet to confirm if a deal is on the way. The company did acknowledge, though, that it has been considering introducing the ODM system not only in China but also in other countries when needed.

(source)

The post Samsung reportedly in talks with Xiaomi’s Wintech to manufacture Galaxy phones for China appeared first on Gizmochina.