War of cell phone

Can LG Overtake Samsung?

Samsung Electronics is truly far ahead of LG Electronics in the global mobile phone market in terms of market share, however, the world’s No. 4 handset manufacturer is hoping to challenge its rival with an array of enhanced user-friendly touch phones.

Such a move seems to continue their steady momentum since the introduction of the pricey Viewty and Touch-web phones, while Samsung has been strengthening touch models with the new Haptic and Soul mobiles, shying away from design-focused Secret Color and UFO phones.

According to estimates by Gartner, a market research firm, the global demand for touch phones will increase two-fold from 2007 to reach 35 million units this year, capitalizing on traditionally-proven spots, while Strategy Analytic (SA) forecast that touch mobiles will account for 40 percent of the market by 2012.

In the North American and European markets which are still key strategic spots for both South Korean mobile makers, LG Electronics wants more of a stake by diversifying its touch mobile portfolios, while Samsung is increasing efforts to propel this year’s strategic Soul and Haptic phones.

``An interesting trend is that global handset makers such as Nokia, Motorola and Sony-Ericsson as well as LG and Samsung have been revamping their strategies to expand U.S. and European sales, a sign of saturation of those markets,’’ a local analyst said Monday asking not to be identified. ``Proven success of LG’s Chocolate, Shine and Prada phones help the Motorola follower add its shares in the key markets.’’

Last week, LG expanded the number of its touch phones to five in North America by releasing the Vu and Vantage models. The 3-inch full-touch-screen LG-CU920 model is highlighted with a sleek and slim ― 12.9 millimeters ― design. AT& T will carry the Vu mobiles. LG will also commercialize LG-830, nick-named Vantage slider model in Canada through a CDMA operator Bell Mobility.

``With Voyager and Venus models having sold a combined 2 million units in seven months, there is a strong possibility to release more touch models,’’ an LG spokesperson said. The company is set to launch the third edition of its Black Label series in a follow-up measure to faithfully continue the current touch-focused scheme.

At the end of the first quarter, LG rose to 21 percent of the American mobile handset market in spite of tightening budgets by U.S. consumers to contend with slowing economic growth, while Samsung slightly boosted its share to 22 percent in the same period, the Boston-based market research firm SA said.

Samsung Targets Europe

Although Samsung is making headway in the North American touch phone market by providing the 2-megapixel sleek Glyde model via Verizon Wireless from May 8, Armani phone, the world’s No. 2 handset maker aims to break down the walls in Europe ― Nokia’s home turf ― with more touch models.

A week ago, Samsung said it will commercialize a 5-megapixel full-touch-screen phone in Europe. The SGH-F480 Touchwiz handset features the advanced sophistication of User Interface _ drag-and-drop, auto-focus, smile shot and LED flash and the price has been set between 349 and 399 euros.

The new touch phone became available after Samsung introduced their slider Soul phone in February at the Mobile World Congress show in Barcelona, Spain. The 5-megapixel GSM-based handset is being marketed toward European customers for availability in April and Samsung insiders say the company is now focusing on Europe’s touch phone market as ``uncertainty’’ was very high in North America.

``Thanks to aggressive marketing, LG has successfully penetrated the North American touch phone market. What we want now is to solidify the relationships with the U.S. mobile operators and to tap into Europe by propelling more touch models,’’ a Samsung executive said.

SA data shows that Samsung’s handset market share in Western Europe was 21.1 percent in the first three months of this year. In Eastern Europe, the share was slightly higher at 24.1 percent due to effective marketing on mid- and low-end phones.

``As far as I know, our Haptic phone will make the first European debut possibly from the third quarter of this year,’’ the executive added.

The Haptic phone sold 100,000 units in one month after it’s April release and Samsung is positive about the phone’s potential success in the long-run with a strong belief in the adaptation of advanced User Interface.

Korea times June 16, 2008