Sources say that the LG gram series of flagship notebooks have shifted to ODM mode, which is produced by Quanta subsidiary Dafeng.

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com, December 3 (Xinhua)-- Newsway said that LG Electronics has outsourced the production of its flagship notebook product line "LG gram" to a Chinese ODM company, which has been insisting on internal production (with the exception of special models such as two-in-one).

It is said that the new Gram model will be produced by Dafeng (Chongqing) computer Co., Ltd., a wholly-owned subsidiary of Quanta Group and one of the manufacturing bases set up by Quanta in Chinese mainland, which has been producing LG electronics mid-range Ultra PC models and Gram two-in-one products.

An industry source said that the ordinary version of LG Gram had previously been produced in-house at LG's Nanjing plant, but now it has also begun to be outsourced. As manufacturers adopt the ODM approach, LG electronics will naturally follow suit.

He believes that "reducing costs and increasing efficiency" is the reason why LG decided to outsource production. LG Nanjing Factory (LGENT), which makes the product, lost 2.4 billion won in the third quarter of this year. (CTOnews.com Note: currently about 13.176 million yuan). This is the first time since 2015 that LG has included the Nanjing factory as a subsidiary in the consolidated financial statements.

Over the same period, the Business Solutions (BS) division, which makes a living selling IT products such as laptops, also posted a loss of 20.5 billion won, which was even larger than in the same period last year. Profit margins also fell sharply compared with the first quarter (65.7 billion won) and the second quarter (2.6 billion won). LG Electronics believes that the slowdown in demand for IT is the main reason.

Sources also revealed that the successor to the LG Electronics 15-inch gram model (model 15Z90S) has passed the Korean Security Certification (KC), and the new phone is expected to be released as early as early next year.