New Chocolate hungry for success

LG Electronics is launching sales in the United States of a revamped version of its hit product, the Chocolate phone. With strengthened multimedia functions, the nation’s second largest electronics company hopes to capitalize on growing demand for MP3 cell phones and do battle against Apple’s iPhone.
LG said its new Chocolate phone, the successor of the music-centric phone that has sold 3 million units since its U.S. launch in July of last year, will be available from Verizon Wireless beginning today.
Along with a navigation wheel that allows for music and video browsing, the new model is fitted with advanced multimedia features such as a slot that supports up to a 4 gigabyte card, a music player and a powerful speaker, according to LG.
Cho Jun-ho, an LG Electronics executive who oversees the mobile communication business in North America, said, “Demand for music cell phones is exploding among young trend setters in the United States.
“It is hoped that the cutting-edge multimedia functions coupled with the striking modern design [of the new Chocolate phone] will attract as much attention as the iPhone,” he added.
According to Strategy Analytics, a market researcher, the U.S. market share of cell phones fitted with MP3 player functions is expected to advance from 33.9 percent now to as much as 63.1 percent, or 126 million, in 2010.
Market watchers are upbeat about LG’s cell phone division. Kim Ji-san, an analyst with Kiwoom Securities, said in a recent report that the success of the original Chocolate phone marks a positive circle effect, with the emergence of hit products leading to sales growth, enhanced brand recognition and a solidified market position. He said the second-half profit for LG will be enhanced “remarkably.”

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]