Pantech taking on mobile phone rivals

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Pantech taking on mobile phone rivals

Pantech & Curitel Communications Inc., the third biggest mobile handset producer in Korea, is challenging its larger rivals by strengthening distribution and upgrading product lines to churn out more expensive handsets with advanced features, like digital cameras. “In order to compete with Samsung Electronics Co. and LG Electronics Co., the company needs its own distribution networks,” said Roh Soon-seok, a Pantech executive. “We are mulling the scale of sales outlets and the timing for establishing them.” Unlike Samsung and LG, which have sales outlets nationwide, Pantech supplies mobile telecommunication carriers. Samsung is the market leader in mobile handsets in Korea, with LG trailing. “The company’s supply to SK Telecom Co. experienced a setback early this year after SK Global Co.’s officials were charged with accounting fraud,” a Pantech official said. “Then we realized the need for stable supply networks.” The official added that manufacturers with their own distribution channels faced fewer problems. Samsung sells over a third of its mobile handsets through its own sales networks. Pantech hopes to upgrade its reputation for low-priced handsets, and plans to add 200 research and development employees late this year. “The company aims to introduce camera phones capable of taking pictures of 1 million pixels and fill its new lines with more advanced and pricier models,” the official said. “The company hopes to compete head-to-head with Samsung.” Pantech’s move is expected to heat up the mobile phone market, where Samsung still commandes more than 50 percent in market share. Pantech is rapidly gaining on LG in market share and has passed it in camera phones, sales of which are sharply rising. Camera phones accounted for more than half of new mobile phone sales last month, compared with 24 percent in January. Industry officials, however, played down Pantech’s challenge. “A large portion of Pantech’s phones are sold under different names,” an official said. “Pantech’s success will depend on whether it can establish a brand that matches its rivals in the long run.” by Cho Min-guen
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