Global and regional digital leader, LG Electronics, has maintained its lead in the sales of CDMA handsets in the third quarter of 2005 by selling 8.8 million handsets, with a 23.8 per cent market share.
According to Boston based independent research and consulting firm, Strategy Analytics (SA), LG sold 22 million units in the first three quarters of 2005. IDC’s Worldwide Quarterly Mobile Phone Tracker states that LG has retained the fourth position in handset sales globally, with a 7.4 per cent market share. The company currently ranks among the world’s four largest handset makers, which includes Nokia and Motorola.
“Whereas only 300,000 units separated LG Electronics from Sony Ericsson in the second quarter of 2005, the difference grew to 1.6 million units during the third quarter, according to IDC reports. LG also topped a customer satisfaction survey in North America, according to research agency JD Power and Associates*. Both our handset supply and consumer satisfaction rose simultaneously, thanks to our strategy of matching production with development,” said K H Kim, President, LG Electronics, Middle East and Africa region.
LG’s 3G handsets, the VX8000 and VX8100 series, have been well received in North America, endorsing its premium handset vendor status. According to IDC reports, LG improved its CDMA and GSM lineups with new phones, particularly in the U.S. and Korea. In the third quarter of 2005, LG’s supply of CDMA handsets to North America increased by 86 per cent, compared to the second quarter, which is a 47 per cent increase from the same period of last year.
According to industry analysts, LG is successfully developing new CDMA handset models that are equipped with sophisticated functions, which is continuing to boost both its domestic and international sales. This is the result of the company’s strategy to consolidate its mobile phone production into its Pyeongtaek facility and its research and development into newly established handset research centre in Gasan-dong, west of Seoul.
“We were the first Korean company to join the GSM Association, a global organisation that plays a vital role in the development of the GSM platform and the global wireless industry. This membership will enable LG to play a bigger role in defining future telecom needs in conjunction with mobile operators,” added Kim.
(Unit shipment in millions)
Rank Vendor 3Q05 3Q05 3Q04 3Q04 Growth
Shipments Market Share Shipments Market Share
1 Nokia 66.6 32.0% 51.4 29.4% 29.6%
2 Motorola 38.7 18.6% 23.3 13.3% 66.1%
3 Samsung 26.8 12.9% 22.7 13.0% 18.1%
4 LG Electronics 15.5 7.4% 11.8 6.7% 31.4%
5 Sony Ericsson 13.8 6.6% 10.7 6.1% 29.0%
Others 46.9 22.5% 55.0 31.4% -14.7%
Total 208.3 100.0% 174.9 100.0% 19.1%
Source: IDC, 2005.
About LG Electronics, Inc.
LG Electronics, Inc. (Korea Stock Exchange: 066570.KR) was established in 1958 as the pioneer in the Korean consumer electronics market. The company is a major global force in electronics and information and communications products with more than 70,000 employees working in 76 overseas subsidiaries and marketing units around in 39 countries around the world. With annual total revenues of more than US $37.7 billion (consolidated), LG Electronics conducts its business in three main areas: Digital Display & Media, Digital Appliances, and Telecommunications Equipment & Handsets.
The LG Telecommunication Equipment & Handset Company provides total solutions ranging from wired and wireless handsets to telecommunications equipment. The company is a leader in the innovation and development of cutting-edge technologies in next-generation wireless telecommunication and is steadily expanding its global market share in 3G wireless systems.
LG Electronics’ goal is to enable the intelligent networking of digital products that will make consumers’ lives better than ever. For more information, please visit www.lge.com
