Cellular stakes raised as LG targets Samsung

LG Electronics Inc. has boldly predicted it will soon topple Samsung Electronics Co. as Korea’s leading manufacturer of cellular phone technology. LG’s information technology department ― which chiefly designs and manufactures mobile phones ― announced it posted 3.5 trillion won ($2.9 billion) in worldwide sales last year, an increase of 46 percent over 2001. “The company is sure that its line of mobile phones is distinctive in design and quality from those of Samsung Electronics,” said Kim Jong-eun, the chief executive of LG Electronics. “Soon, the company will increase its number of mobile phone product lines by as much as 80 percent over Samsung Electronics. Our retail network and sales department will also be strengthened.” Mr. Kim said LG Electronics would focus on setting up subsidiaries overseas, such as in China and India, this year. “Local researchers in China developed a new mobile phone model that will be presented in June,” Mr. Kim said. “The company will also supply more than four million code division multiple access handsets to India this year.” He added the company would aim to increase its share of the global mobile phone market to 5 percent this year, which would rank it fifth overall. LG Electronics is now sixth with a 3.8-percent share. Samsung is third with a 10.4-percent share. “However, it will take a lot of effort to overtake Samsung Electronics, which has a 50-percent share of the domestic market, or twice that of LG Electronics,” Mr. Kim said. “The most important issue is to raise LG Electronics’ brand image with better quality and designs.” by Kim Jong-yoon