Qualcomm Inc (QCOM)

[khemara_qc]

Change Seen In Mobile Phone Maker Ranking In First Half
Friday, July 01, 2005
By Kim Won-suk

http://english.etnews.co.kr/news/detail_top.html?id=200507010006&art_grad=9

Pantech & Curitel displaced LG Electronics as the country's second largest mobile phone maker in terms of sales volumes in June, and now aims to narrow the gap with No. 1 Samsung Electronics. The flip-flop came after the company bought SK Teletech, effectively boosting its combined share of the market to nearly 30% versus some 50% held by Samsung Electronics.

Competition is expected to heat up in the second half of this year, as LG Electronics and Pantech & Curitel vie for the second spot, with Motorola joining the race.

Samsung Electronics plans to maintain its wide lead with such specialized phones as blue black phones and super slim phones. The company aims to increase its share of the digital multimedia broadcasting (DMB) receiver/phone market, where SK Teletech holds the established position. "We see little threat from Pantech & Curitel's advance," said a high-ranking manager at Samsung Electronics. "We expect to boost our share of the market to up to 55% in the second half of this year."

Pantech & Curitel aims to close the gap with Samsung by creating synergy with SK Teletech. The company signed a deal with SK Telecom to provide satellite DMB phones, and also plans to supply similar phones to KTF and LG Telecom in September and October this year.

LG Electronics plans to devote more resources to introducing high-end Cyon phones, which have been known for less expensive image. "We sold 1.5 million to 1.6 million units in the first half of the total goal of 3.5 million units set for this year," said an executive at the company. "We aim to raise sales of high-end models including DMB phones, while maintaining the market share of around 20%." The company plans to add two new models of satellite and terrestrial DMB phones, respectively, as a part of its premium strategy.

Except Samsung Electronics, LG Electronics and Pantech & Curitel reported disappointing sales in the world market in the first half of this year, and they are now keen to change that. Samsung Electronics sold 48 million to 49 million units in the first half of the annual target of 100 million units. LG Electronics and Pantech & Curitel sold 22 to 23 million and 10 million units, respectively. The two companies target sales of 62 million and 25 million units for this year, respectively.

Samsung Electronics plans to concentrate resources on 3G WCDMA phones in the second half, aiming at 13% of the world WCDMA phone market. LG Electronics plans to invest 300 billion to 350 billion won (approximately 350 million dollars) in developing cutting-edge 3G phones and GSM phones. Pantech & Curitel hopes to seal export deals for its WCDMA phones as early as September this year, and the company also sets its sight on BRIC market including Russia and Latin America.