Motorola plans a comeback

Motorola Korea Inc. has released a new 2.5 generation mobile handset in a comeback move aimed at regaining its major market share. Unveiled yesterday, the new V740 model was developed by the United States-based company over the past eight months for the Korean market. It supports video files and an integrated circuit chip which enables it to be used as a credit card or transportation pass in conjunction with local service provider, SK Telecom Co. Motorola -- which saw a 17 percent market share in 1999 fall to just 6 percent last year -- is vowing to boost its mobile phone sales this year, led by its cutting-edge model. The move signals a trend among overseas mobile handset producers, which have swept through global markets but failed to capture Korea. To expand its influence in the code division multiple access market -- which is growing fast worldwide -- the company admits it will first have to gain ground in Korea, the first country to commercialize the U.S. technology. "The introduction of the 2.5 generation model was to show our determination to try one more time for the Korean market," Jeong Gap-geun, a vice executive at Motorola Korea said yesterday. While mobile handsets with color displays are now a mainstay of the industry, Motorola has managed in the past with black and white products. It belatedly introduced two models to Korea with color displays last year. Finland-based Nokia has shared a similar experience. It introduced few models to the Korean market, and they failed to grab the attention of trendy local consumers. Nokia recently pulled out of the second-generation mobile handset market in Korea. But the company will reenter the market with its third generation products, after observing the rapid growth of CDMA technology in recent years. A Motorola marketing official noted: "To succeed in worldwide CDMA markets, we have to forge a stepping stone here in Korea. We plan to develop a host of state-of-the-art mobile handsets to better compete with local players." Domestic handset makers, however, are little concerned about foreign challenges. "Korean products have a competitive edge in technology and services, so we do not expect much trouble," said Lee In-seok, vice executive at LG Electronics Co. by Kim Jong-yoon