InterDigital Inc (IDCC)

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Korean Handset Makers Focus More on GSM Phones

Korean mobile phone makers are putting more emphasis on models that meet the European-style Global System for Mobile Communication (GSM) standard, which accounts for more than 70 percent of the world¡¯s cell phone market.

Samsung Electronics shot up into the top three in the global GSM market last year. Strategy Analytics, a U.S.-based market researcher, said Samsung Electronics¡¯ market share in the world¡¯s GSM market rose from 4.4 percent in 2001 to 12 percent in 2004. That means Samsung overtook Siemens of Germany and joined Nokia and Motorola at the top of the market. Sales also skyrocketed, from 33.8 million phones in 2003 to 58 million in 2004. GSM-compatible phones made up 67 percent of total sales last year, compared to 60.7 percent in 2003.

LG Electronics also increased production of GSM handsets, from 610,000 out of a total 27.4 million phones in 2003 to 18.4 million out of 44.4 million in 2004. GSM-style phones took up 41.4 percent of all LG¡¯s handsets manufactured last year, up from 22.2 percent the year before. The company, which launched over 20 GSM handsets last year, plans to release more than 30 this year.

Meanwhile, Pantech and its affiliate Curitel Communications are to open their European headquarters in Frankfurt, Germany, in May. The company said the long-term prospects for the GSM market were very positive, and it had high expectations of the European unit.

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