South Korean giant LG Electronics is upbeat about achieving its goal of becoming one of the world's top three mobile-phone makers by 2010 by capitalising on its stylish new devices.

LG established its place in the premium segment last year with the launch of the sleek Chocolate model, the first in its Black Label series.

According to the company, it sold more than 7.5 million Chocolate phones worldwide last year and expects the number will run to 10 million units in the first half of this year. In the combined markets of Asia, the Middle East and Africa, sales of the model are expected to reach about one million in the same period.

Jae Bae, LG Electronics Mobile Communications' executive vice president for the overseas sales and marketing division, said that Asia, the Middle East and Africa were a vital part of LG's long-term strategy of becoming one of the top three handset-makers globally by 2010.

He added that this was because sales in these markets were expected to double every year. He made the remarks last week during LG's showcase of its new Shine model and also the gear branded as Prada by LG.

Currently the South Korean handset vendor is ranked the fourth or fifth largest player in term of global market share for code division multiple access (CDMA) and GSM mobile phones combined.

LG targets its global sales at 78 million handset units this year, up from 64.4 million units in 2006 and 55 million the year before. Of sales last year, 25 million were GSM handsets and 39 million CDMA handsets.

Of this year's sales target, it expects to sell almost 9.5 million GSM handsets in Asia, up from more than 4.7 million last year.

In the Middle East and Africa, it targets combined sales of 4 million GSM handsets this year, up from the combined 1.7 million last year. The company also plans to expand its market share in these three markets from the current 4 per cent to 9.4 per cent by 2010.

The company has also launched the Shine slide-phone, the second model in the Black Label series. The third in the series is expected to follow by the end of the year. The Shine is scheduled to hit the Thai market in May.

LG executives are confident that the metallic Shine phone will enjoy a success similar to that of Chocolate.

Yong Mun-seo, LG's group manager for mobile-phone business in Southeast Asia and Oceania, said LG was this year targeting growth in its market share in Thailand to 5 per cent from only "a few" units last year.

There are almost 40 million mobile-phone subscribers in the Kingdom, where some cellular operators forecast that sales of new handsets this year will reach 6 million to 10 million units.

LG is also introducing in selected markets its stylish Prada phone, a result of the collaboration between LG and the Italian luxury fashion house. The team-up with Prada is LG's showcase entry into the luxury segment.

Bo H Choi, vice president for the Asia, Middle East and Africa business team of LG Electronics Mobile Communications, said LG was taking advantage of the group's "technology synergy" to produce the premium handsets.

LG has four main businesses: mobile phones, digital appliances, digital display devices and digital media products.

Sirivish Toomgum

The Nation

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