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: Making smartphone browsing 20% faster while reducing power consumption by 40%

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

Microsoft beefs up security protection in Windows 10

16 hours ago

What Microsoft users in business care deeply about—-a system architecture that supports efforts to get their work done efficiently; a work-centric menu to quickly access projects rather than weather readings ...

US official: Auto safety agency under review

Oct 24, 2014

Transportation officials are reviewing the "safety culture" of the U.S. agency that oversees auto recalls, a senior Obama administration official said Friday. The National Highway Traffic Safety Administration has been criticized ...

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

Ebola.com domain sold for big payout

Oct 24, 2014

The owners of the website Ebola.com have scored a big payday with the outbreak of the epidemic, selling the domain for more than $200,000 in cash and stock.

Hacker gets prison for cyberattack stealing $9.4M

Oct 24, 2014

An Estonian man who pleaded guilty to orchestrating a 2008 cyberattack on a credit card processing company that enabled hackers to steal $9.4 million has been sentenced to 11 years in prison by a federal judge in Atlanta.

Magic Leap moves beyond older lines of VR

Oct 24, 2014

Two messages from Magic Leap: Most of us know that a world with dragons and unicorns, elves and fairies is just a better world. The other message: Technology can be mindboggingly awesome. When the two ...

User comments : 0