Korea’s Big 3 Mobile Phone Makers Compete in Japan

The Korean mobile phone makers are increasing their market shares in the global market. Now, they are trying to show the same growth in the Japanese market. On April 30, market observers said that Samsung Electronics, LG Electronics and Pantech Group decided to double their sales in the Japanese market by taking a chance coming with the change of the Japanese market. The change is given by NTT Docomo, Japan’s largest mobile carrier, who once said that it will suggest a guideline to help mobile phone makers manufacture simple calling phones by separating the cutting-edge technology for mobile internet from the basic OS. Also, the Japanese makers like Mitsubishi, Sanyo and Sony Ericsson are reducing or withdrawing the mobile phone manufacturing business. LG Electronics supplying mobile phones to NTT Docomo set the target of 700,000 units for this year. This is a double increase from a year before. The company said that the chocolate phone, its global hit product, will be launched to the Japanese market, the last market in the world. The global fandom of the chocolate phone will attract Japanese consumers’ interest. It plans to roll out wine color chocolate phones to meet the preference of Japanese consumers. Managing Director Ma Chang-min of LG Electronics said, “The chocolate phone has been sold 200,000 units in only five months, showing the good performance even at the beginning stage. We will increase the volume to the Japanese market by a double.” Pantech Group, supplying its handsets to KDDI, the 2nd largest carrier in Japan, is also preparing its new 3G products to increase the share in the Japanese market. The company was the first maker who entered the Japanese market in 2005. Since then, it has drawn consumers’ interest by targeting elderly consumers and providing multi-functional handsets. Pantech Group has rolled out au W61PT, its 3G slide phone with the sophisticated design for Japanese consumers, in last February, increasing its influence on the market. It plans to surpass 1 million units, up 20% from a year earlier. Samsung Electronics weighs the brand power more than the growth of sales. Samsung has supplied its 3G handsets to Softbank through Vodafone Global since 2006. To date, as many as 10 models were rolled out. Particularly, its 707SC model has been sold 400,000 units. An official of Samsung Electronics said, “Japanese consumers prefer the advanced technology as well as the sophisticated design. They are the most critical consumer in the world. Therefore, we are trying to establish our brand image stronger rather than focusing on the sales.”