Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

LG Aims for 10 Percent of Mobile Market
Aug 11, 2005
 Printable format
 Email this Article
 Search

LG Electronics Inc. aims to raise its share in the global handset market to 10 percent in 2006 from 6.4 percent now by offering a bigger selection of products, a company executive said.

LG, which overtook Siemens last year as the world's fourth-biggest handset maker, expected average selling prices and mobile phone sales volume to rise in the end-September quarter from the second quarter, on seasonal demand. But in the longer term, it would consider cutting handset prices to better compete with global leaders Nokia and Motorola, Jae Bae, executive vice president of the Strategy Division of LG's mobile company, told Reuters.

"We aim to grow more than the market grows and set a target of up to 10 percent market share for next year," Bae said. "As we will introduce a series of new models from September, the average selling price and sales volume will grow from the third quarter, compared with the second quarter. The operating margin is also expected to turn to profit from the third quarter."

LG plans to launch about 20 new models in the second half of the year and aims to ship up to 50 new models every year, about half as many as main rival Samsung Electronics Co. Ltd. In the quarter ended June 30, LG maintained its 6.4 percent global market share while Samsung, the third-biggest mobile phone maker, fell to 13 percent from 14.2 percent, according to Strategy Analytics. Finland's Nokia, the world's biggest mobile phone maker, grew its market share by 1.1 percentage points to 32.3 percent. Motorola was second at 18 percent.

Bae did not provide a 2006 sales target for cell phones. In July the company cut its sales forecast by nearly a fifth to around 50 million handsets this year, blaming cut-throat competition in the mobile industry.

"We are studying the possibility of cutting prices with chip makers and components manufacturers," Bae said, although he added the company would focus on producing high-end handsets to improve its brand image. LG's mobile phone division made an operating loss of 4 billion won (approx. U.S. $3.9 million) in the end-June quarter. Margins fell to a negative 0.2 percent from a 3.6 percent profit in the first quarter and compared with 6.4 percent a year ago. More broadly, the company reported a 70 percent fall in quarterly profit in July, hit by tough competition in mobile phones and sliding LCD screen prices. (Reuters)

Back to Daily News

 

Daily News

...........................................................

Nov 24, 2014: Husqvarna named exclusive chainsaw provider for Asplundh

Nov 24, 2014: LG garners Innovation Award for Home Appliances

Nov 24, 2014: Survey: 10% of consumers plan big-ticket appliance purchases in the coming year

Nov 24, 2014: 2014 Green Building Standard available from ASHRAE

Nov 24, 2014: Smeg enters small appliance market in the United States

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows