LG continues impressive growth trend

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. LG sold 13.9 million units in the fourth quarter last year and posted a 55.3 per cent year-on-year increase and 17.8 per cent sequential increase. Most of this growth is attributed to increased CDMA and GSM shipments to the United States.

'Mobile phone sales are booming this year, there has been a 20 per cent industry growth in the first quarter of this year compared to 2004. Although LG Electronics began its GSM handset business only in 2000, the division has posted a hefty growth rate of 100 per cent every year. LG is 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 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 Ease and Africa Operations.

LG has also signed a joint venture agreement with Canadian telecom company Nortel Networks to develop and producing telecom equipment for 3G wireless networks based on W-CDMA (Wideband Code Division Multiple Access) technology. The partnership will target markets by combining Nortel's telecom equipment and LG's terminals.

'We are 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,' said Kim.

In 2004, LG also sold 3 million 3G phones to Hutchison 3G, the global 3G services leader, which has networks in eight Asian and European countries. It has maintained its leadership in the CDMA segment by selling more than 4.5 million units and garnering a 27 percent market share last year, according to a mobile phone market share study by leading IT market research and advisory firm, IDC.