In order to rank among the top three mobile brands in the world by 2006, global and regional digital leader LG Electronics is expanding aggressively into the CIS (Confederation of Independent States) market this year.
The company is aiming for a ten per cent market share in Russia and to reinforce its position in the premium mobile phone market by selling over 42 million handsets in 2005. Under the theme ‘Leader in Mobile Entertainment’, LG had high profile participation at the ‘Expo Comm Moscow 2005’ where the company unveiled advanced MP3 phones, 3D game phones, handsets equipped with health care battery packs, mega pixel fingerprint identification phones, mega pixel 3G mobile phones and terrestrial/satellite DMB-receiving phones.
“Our telecommunication and handset business has boosted its sales of handsets from 6.9 million in 2000 to 44 million last year. 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 percent growth to seize the No. 3 spot in handsets in two years. Within five years, LG wants half of its sales to come from handsets, up from 28 per cent in 2004,” said K H Kim, President, LG Electronics Middle East and Africa Operations.
“The Russian mobile phone market is rapidly growing, with an unexpected volume increase from 28 million sets last year to 33 million sets this year. Competition will be more aggressive this year and we are focusing on launching innovative products and brand-building activities that specifically target young consumers,” Kim added.
Design and function are two factors influencing mobile handset in the CIS market, and sales of premium compact handsets with advanced gadgetry such as cameras, Bluetooth and MP3 players are on the rise. LG will introduce its top three music phone models with MP3 functions and refined internal antenna into the CIS market this year. The company aims to launch 20 products, including premium phones costing above US$250.
LG handsets that grabbed attention at the exhibition include the new handset styled on a sports car with a built-in MP3 player, 1.3 mega pixel camera and bluetooth; and the GPS/GPRS equipped ‘karaoke’ phone with MMS and MP3 capabilities.
The company is investing in beefing up its R & D investments and investing US$ 1.95 billion in research in 2005. LG is aiming to have more than 5,000 researchers in its R & D division by 2006 and to recruit more than 30 per cent of its researchers outside Korea. An R & D centre was established in Russia at St. Petersburg University at the end of last year and more than 100 researchers lead local mobile phone development. In order to become the top cellular phone brand in Russia by 2007, LG is kicking off its 2005 ‘LG Action Sports European Tour’ in Russia.
About 870 global telecommunications companies from 3 countries participated at EXPOCOMM Moscow 2005. The exhibition has been held every year since 1991.
