LG Electronics targeting sales of US $300 million in handsets in Middle East and Africa region
LG Electronics, the global technology leader and pioneer in mobile technology, swept through Europe’s WCDMA mobile phone markets by selling one million units in the first quarter of this year. LG is the world’s best selling WCDMA vendor with a global market share of 25.5 per cent, according to market research agency International Data Corporation (IDC).
An estimated 8.1 million units were sold in Europe, the world’s largest WCDMA market, last year. Strong sales are expected this year as well and LG predicts sales of around 22 million WCDMA units in Europe. Globally, LG supplied four million WDCMA units in 2004 and estimates global market size to reach 50 million units this year.
“LG has the technical expertise to drive mobile technology to unprecedented levels. Our commitment to enabling mobile entertainment will drive our business strategy and growth in the mobile phone segment this year. Our application of multimedia technologies and close partnerships with mobile operators is responsible for our success,” said K H Kim, President, LG Electronics, Middle East and Africa Operations.
LG works with Europe’s major 3G service mobile operators, including Hutchison, Orange in France, and Telefonica in Spain. To consolidate its leadership, LG aims to introduce more than 20 new WCDMA models this year. The company’s focus on the development and application of technology in digital appliances and WCDMA mobile phones has also helped it differentiate its products from those of its competitors.
“We are targeting sales of US $300 million in handsets in the Middle East and Africa region this year; globally we expect to register a 50 per cent growth to seize the third spot in handset sales in two years. Within five years, LG wants half of its sales to come from handsets, up from 28 per cent in 2004. Based on our leadership in the WCDMA market, we will focus on the GSM/CPRS/EDGE markets and develop 3.5G handsets,” said Kim.
LG overtook Siemens as the world’s fourth most popular mobile phone brand in the first quarter of this year. According to IDC reports, LG clocked sales of 11 million units in the first quarter of 2005 to capture 6.4 per cent market share worldwide. The company has witnessed a year-on-year growth of 26.9 per cent from 2004.
In the GSM segment in the Middle East and Africa region, LG sold handsets worth US $169 million in 2004 and aims to achieve sales turnover of US $300 million in handset sales this year. The company has become a serious competitor in the region’s mobile market by introducing niche products to meet specific customer needs like the Qiblah phone, the world’s first handset with Qiblah and Azan functions.