LG to unveil premium handsets in Brazil
October 2, 2007
LG Electronics will unveil a series of premium handsets in Brazil
to grab the top spot in the 3G next generation mobile market in
the fast-growing Latin American country. It is a move that is to
make up for slowing growth in European and U.S. markets.
A series of stylish bestsellers will be displayed including Shine,
Prada and the new five megapixel camera phone Viewty models at Futurecom
Expo, Florianopolis, Brazil from Oct. 1-4.
Futurecom is the premier telecommunications and information technology
event in Latin America and is expected to draw more than 7,000 industry
participants.
``Joining hands with one of the country's leading 3G operators,
Claro, a unit of America Movil, LG will unveil the latest edition
of high speed downlink packet access (HSDPA) handsets, LG-MU500,''
its Brazil representative Cho Jung-bong said Sunday.
Users can surf the Web at near broadband speeds through the phone's
Internet browser. Besides high-speed data transfer (1.8 Mbp), the
slim slider is also packed with a number of other multimedia features
such as multi media messaging, a music player and global roaming,
as well as Bluetooth connectivity.
``We aim to sell more than 10 million 3G handsets in 2008 and increase
our market share to 26 percent for a No. 1 spot next year,'' Cho
said.
LG ranks No.3 in the Brazilian 3G phone market with a market share
of 19 percent after Motorola and Nokia, according to the company.
The 3G phone market is expected to take up 17 percent of Latin
America's biggest economy by 2010 from the current 4 percent among
the total handsets market, according to market researcher PyramidSearch.
LG, which had been squeezed by its rivals, such as Nokia, Motorola
and Samsung, has been raising its profile with the success of its
ambitious Chocolate, Shine and Prada phones in European and U.S.
markets.
Viewty, the fourth spot, well reflects LG's ongoing move to make
more standout products.
The company had reported its highest quarterly profit and a record
profit margin of 11.6 percent, the second highest after Finland-based
Nokia.
LG was pinning high hopes on the premium third-generation phone,
which it believes will solidify the company's image as a premium
phone maker and make it one of the world's top three handset makers
within the next couple years.
In Brazil, three major operators, Telemig Celular, CTBC and Claro
have already announced their 3G launch plans for 2007 and are carrying
out trials to see what types of services might work.
``What is impressive results for LG is that the company reaped
over 90 percent profit of the total mobile phone sales by selling
GSM handsets here in Brazil, where CDMA phones are disappearing,''
said Cho.
Months ago, LG said it had obtained top market share for the first
half of the year, in five product categories surveyed by the Brazilian
Electrical and Electronics Industry Association _ 68 percent in
PDP, 31 percent in LCD TV, 31 percent in DVD, 23 percent in home
theater and 38 percent in LCD monitor.
Backed by such buoyant outcomes, LG revised its sales goal in the
market up to 40 percent from last year to $2.5 billion.
Analysts said LG needs to build a stronger product portfolio addressing
different price levels as the industry growth in the Latin America's
biggest economy is still propelled by soaring demand for lower priced
phones.
``Low-end phones are popular in the country. LG needs to be aggressive
in the 3G segment but the premium brand strategy does not necessarily
mean maintaining profitability,'' said an analyst from a local securities.
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