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LG, Samsung dominate CDMA phone market


LG Electronics Inc. and Samsung Electronics Co. dominated the global code division multiple access handset market last year, said Strategy Analytics, a U.S.-based research firm, yesterday.

LG topped the ranking by selling 21.3 million CDMA mobile phone units, or 21.6 percent share, last year. The company overtook Samsung and U.S.-based Motorola to secure the world's largest CDMA phone provider status.

Samsung, the world's third-largest handset maker, shipped 20.4 million units during the same period, accounting for a 20.7 percent share.

The combined market share of LG and Samsung reached 42.3 percent, reflecting the solid position of Korean phone makers when it comes to the CDMA standard developed by U.S.-based wireless technology company Qualcomm Inc.

Korea is also considered a leader in supplying CDMA handset and solutions technologies as the country's three carriers are providing advanced third-generation services to more than 34 million users in the world.

LG and Samsung said the greater market share was largely attributed to aggressive marketing and diversification strategy. Both companies used to focus on the North American market, but recently diversified its export lines to other emerging markets like Brazil and China.

LG's emergence as a top player drew keen interest as the company has long been the No. 2 player on the domestic CDMA market after Samsung, which virtually controls the high-end mobile phone market with its strong brand power.

Meanwhile, Motorola shipped 19 million CDMA handsets last year, securing an 18 percent share. Nokia ranked fourth, carving out a 12.5 percent share, or 12.3 million units.

Following behind were Kyocera with 10.9 million units (11 percent) and Sanyo with 3.4 million units (3.5 percent).

But Korean handset manufacturers have yet to catch up with other competitors on the global system for mobile communication, or GSM, phone market. Nokia topped the ranking with 146 million units, or 42.2 percent share for the global GSM handset market, followed by Siemens with 43.3 million units, or 12.5 percent.

Motorola grabbed the No. 3 slot with 38.4 million units, while Samsung ranked fourth with 33.8 million units. LG shipped 6.1 million GSM phones last year.

Korean handset makers have churned out sophisticated models at breakneck pace on the strength of the local CDMA-based market. But Europe and other overseas markets rely on GSM extensively, and handset demand is surging, prompting Samsung and LG to focus more on the European mobile phone market.

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By Yang Sung-jin


2004.03.08

http://www.koreaherald.co.kr/SITE/data/html_dir/2004/03/08/200403080071.asp