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Samsung, LG Show Latest Cell Phones at Biggest Asian Telecom Fair
, 06.15.04, 10:26 AM ET

SINGAPORE, June 15 Asia Pulse - South Korean electronics manufacturers Samsung Electronics Co. and LG Electronics Inc. today showcased their latest mobile phone lineups at a Singaporean high-tech trade show, strengthening their push to capture more of the Asian market.

Samsung Electronics, the world's third-largest mobile phone manufacturer, plans to unveil 20 new models during CommunicAsia 2004, which runs from Tuesday through Saturday.

Primarily aimed at catching up with market leader Nokia, the world's largest cell phone maker, Samsung Electronics is focusing on selling camera phones, the industry's hottest segment.

The company's lineup includes phones with two-megapixel resolution that offer a similar picture quality to entry-level digital cameras, based on both code division multiple access (CDMA) and global system for mobile communications (GSM) standards.

Samsung also exhibited a dual-mode phone that can receive CDMA and GSM calls, allowing customers to use the device regardless of technical standards.

"The CommunicAsia telecommunication trade fair presents a good opportunity to showcase the high-end camera phones to Asia's fashion-conscious customers," a Samsung Electronics executive at the show said.

"In particular, the fair will set the stage for us to expand our presence in the regional market for megapixel camera phones," he said.

Samsung's local rival, LG Electronics, which has leapt to No. 6 in the global cell phone market from No. 10 in just two years, unveiled 40 new different models, including two-megapixel camera phones, smartphones and handsets with MP3 audio players.

The company is betting on sales of third-generation (3G) phones.

In early May, LG Electronics signed a contract with Hong Kong-based Hutchison Whampoa to supply three million 3G cell phones worth US$100 million.

The Asian region, including Singapore, Hong Kong and Taiwan, is seen as an important emerging market for the South Korean handset manufacturers to sell camera phones.

According to a recent report by International Data Corp. (IDC), a technology research house, camera phone sales in the Asia-Pacific region outside of Japan are predicted to grow from 6 million units last year to 16 million or more in 2004.

Worldwide, camera phone shipments are expected to total at least 93 million units this year compared to 57 million in 2003, IDC said.

As more customers are looking at camera phones when they replace their phones, Samsung and LG hope to expand their presence in the global market.

The fair will also address attempts to find a way for the 3G service, which promises to offer faster Internet access and facilities such as video conferencing through mobile phones, to take off.

So far, 3G service phone sales have proved disappointing, mainly because of the scant availability of handsets and poor network quality, analysts said.

Around 50 domestic small- and medium-sized companies joined the CommunicAsia exhibition, led by the Korea Association of Information and Telecommunication.

The event is expected to draw nearly 40,000 visitors from 79 countries, according to organizers.

CommunicAsia has a history of more than 25 years with a host of sub-exhibitions, offering a comprehensive range of mobile networks and applications, network technologies and satellite communications.

More than 80 per cent of the fair's exhibitors are international companies. High-tech heavyweights exhibiting include Nokia, Motorola, Ericsson, France Telecom, Siemens, Sony, Telekom Malaysia, and Telephone Organization of Thailand, among many others.

Last year, the fair was called off following the outbreak of severe acute respiratory syndrome.

(Yonhap)
http://www.forbes.com/infoimaging/feeds/infoimaging/2004/06/15/infoimaging01087308974978-20040614-20...