Tuesday, May 6, 2008

LG, Samsung Benefit From Motorola’s Collapse in US



Models pose with LG Electronics' new handset, nicknamed enV2. Aimed at the U.S. market, it is the latest model that has a full QWERTY keypad. / Courtesy of LG Electronics


Korean mobile phone makers are trying to dominate the U.S. market as Motorola is beginning to lose its grip on the home turf.

Samsung Electronics and LG Electronics have increased their market shares in North America this year while Motorola, the local No. 1, reported increasing losses. Samsung and LG are the second and third largest phone sellers in the U.S. market, ahead of Nokia, the global leader.

Fancy and techy handsets are the driving forces of the two Korean firms. LG said Sunday that it has sold 2 million high-end phones that have full QWERTY keypads in the first three months of the year, out of 8.6 million in total sales.

The company hoped that a new product named enV2 (pronounced ``envy two'') will further boost the popularity of the full-keypad phones.

``We have closely analyzed the patterns of how North American consumers send and receive messages on the phone, and enV2 is designed for that purpose,'' Hwang Gyeong-ju, chief of LG's mobile business in North America, said in a release. ``There are explosive demands for QWERTY phones in the young generation, and we are committed to lead this sector.''

According to market research firm Strategic Analytics, Motorola had 34.6 percent of the North American market last year but it is expected to sell much less this year. Meanwhile, Samsung and LG are riding high on their stylish phones that often come with full-size keypad or touch-sensitive screens.

``The year of 2008 is shaping up to be the year of the Koreans. Improved handset portfolios enabled LG to grow at almost four times the annual industry average, while Samsung is growing over two times faster,'' a recent report by the research firm said.

The chance is big for Korean firms in North America because it is the only major region in the world where Nokia isn't No. 1. The Finnish giant boasts having 40 percent of the global market, but in the United States its market share has collapsed from 20 percent to 7 percent over the past two years, giving away more room for the Korean duo to thrive.

Not to waste the chance, LG is trying to jazz up its brand image by spending more money in promotion and advertisement. Most notably, the firm's U.S. subsidiary recently featured its mobile phones n the superhero movie ``Iron Man,'' by paying an undisclosed sponsorship fee. It even launched a promotional event that will award 20 ``Iron Man Phones,'' which resemble the costume color of the movie's main character. 

Article from: Korean Times 


 

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