LG says mobile market holding up, launching Android phones

Jun 16, 2009
LG L1400

LG Electronics Inc. said Tuesday that the mobile phone market was holding up despite the global slump and announced plans to launch three models powered by Google's Android operating system this year.

"The market is actually holding up versus last year... I think the recession impact is less than what we expected last year," said Chang Ma, the Korean giant's vice president of marketing strategy for mobile communications.

In an interview with Dow Jones Newswires, Ma said LG, the world's third largest maker in shipment terms, was eyeing 10 percent market share this year.

"If you figure the market is about 1.1 billion, then our sales volume is supposed to be 110 million," he said.

In 2008, it shipped 100.7 million handsets worldwide and its operating profit margin from the business was 11 percent.

According to market research firm Strategy Analytics, LG's market share in the first quarter was 9.2 percent, up from 8.6 percent a year earlier.

The company trails Corp. of Finland and Samsung Electronics Co., also based in South Korea.

LG is planning to launch three different Android-powered devices in the third or fourth quarter this year, with more due out in 2010.

is Google's open-source operating software for mobile phones with Internet capabilities. US telecom operator T-Mobile began selling the first Android-based phone known as the G1 last year.

The global mobile phone market has been hit hard by the broad economic downturn.

ABI Research said in a report that worldwide handset shipments fell 11.9 percent during the first quarter from a year earlier to 255.6 million units.

LG's Ma said the company was expecting a gradual improvement in demand during the second half of this year.

Global handset sales this year will likely remain flat or fall slightly compared with 2008, instead of analysts' forecasts of an eight to 15 percent decline, the executive said.

LG will not cut prices for the sake of expanding its market share in handsets, he said.

His comments came after rival Samsung said Monday that it expected the global handset market to remain weak for the rest of 2009 but expressed confidence of hitting its shipment goal of 200 million units this year.

(c) 2009 AFP

Explore further: Hand out money with my mobile? I think I'm ready

add to favorites email to friend print save as pdf

Related Stories

Mobile phone sales up six pct in 2008, 4th qtr weak

Mar 03, 2009

Mobile phone sales grew by six percent in 2008 over the previous year but fell nearly five percent in the fourth quarter as the global economy weakened, market research firm Gartner said on Tuesday.

Mobile-phone shipments up 25 percent

Oct 25, 2005

Global mobile-phone shipments reached a record 209 million during the third quarter of 2005 as industry prices continue to soften.

Strong sales not leading to mobile profits

Jan 26, 2006

Mobile-phone manufacturers are finding that global demand for handsets is almost insatiable, as consumers in wealthy countries flock to update their phones with the latest multi-functioning products, while those in poorer ...

Nokia profit plunges 90 percent in Q1

Apr 16, 2009

(AP) -- Nokia Corp. on Thursday said profits plummeted 90 percent in the first quarter because of fading demand for mobile phones amid the worldwide downturn - but its shares surged as analysts had expected ...

Recommended for you

Hand out money with my mobile? I think I'm ready

Apr 17, 2014

A service is soon to launch in the UK that will enable us to transfer money to other people using just their name and mobile number. Paym is being hailed as a revolution in banking because you can pay peopl ...

Quantenna promises 10-gigabit Wi-Fi by next year

Apr 16, 2014

(Phys.org) —Quantenna Communications has announced that it has plans for releasing a chipset that will be capable of delivering 10Gbps WiFi to/from routers, bridges and computers by sometime next year. ...

Tech giants look to skies to spread Internet

Apr 16, 2014

The shortest path to the Internet for some remote corners of the world may be through the skies. That is the message from US tech giants seeking to spread the online gospel to hard-to-reach regions.

Wireless industry makes anti-theft commitment

Apr 16, 2014

A trade group for wireless providers said Tuesday that the biggest mobile device manufacturers and carriers will soon put anti-theft tools on the gadgets to try to deter rampant smartphone theft.

Dish Network denies wrongdoing in $2M settlement

Apr 15, 2014

The state attorney general's office says Dish Network Corp. will reimburse Washington state customers about $2 million for what it calls a deceptive surcharge, but the satellite TV provider denies any wrongdoing.

Netflix's Comcast deal improves quality of video

Apr 14, 2014

Netflix's videos are streaming through Comcast's Internet service at their highest speeds in the past 17 months now that Netflix is paying for a more direct connection to Comcast's network.

User comments : 0

More news stories

Ex-Apple chief plans mobile phone for India

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

A homemade solar lamp for developing countries

(Phys.org) —The solar lamp developed by the start-up LEDsafari is a more effective, safer, and less expensive form of illumination than the traditional oil lamp currently used by more than one billion people ...

NASA's space station Robonaut finally getting legs

Robonaut, the first out-of-this-world humanoid, is finally getting its space legs. For three years, Robonaut has had to manage from the waist up. This new pair of legs means the experimental robot—now stuck ...

Filipino tests negative for Middle East virus

A Filipino nurse who tested positive for the Middle East virus has been found free of infection in a subsequent examination after he returned home, Philippine health officials said Saturday.

Egypt archaeologists find ancient writer's tomb

Egypt's minister of antiquities says a team of Spanish archaeologists has discovered two tombs in the southern part of the country, one of them belonging to a writer and containing a trove of artifacts including reed pens ...