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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: jackmore who wrote (38866)	1/20/2004 8:00:10 AM
From: jackmore	Read Replies (1) \| Respond to of 197225

Samsung, LG make inroads to India World's second most populous market seen overtaking China in mobile sector Samsung Electronics Co. and LG Electronics Inc. are jockeying for a bigger share of the fast-growing mobile handset market in India, a new export destination for Korean electronics makers. Samsung, the world's third-largest mobile phone maker, and LG, ranked fifth, view India as a key market that will offer fresh growth for sales, mimicking the rapid expansion pattern of China. India has a population of 1.02 billion, second largest after China, and its economy is growing at a solid pace helped by the Indian government's measures to open up the market and spur economic growth. The current number of mobile phone users is about 28 million and is forecast to surpass 125 million in the second half of 2006. Market watchers say India will eventually overtake China in the mobile service sector around 2009. The stakes are high for Korean handset producers. With the number of Korean mobile phone users hovering at 33 million, handset makers do not expect much from the saturated domestic market. Seeking a breakthrough overseas, Samsung and LG have already carved out their shares on the Indian mobile phone market. But Samsung and LG are targeting different users based on two competing wireless standards - code division multiple access, or CDMA, and global system for mobile communication, or GSM. Korea relies on CDMA technologies developed by U.S.-based Qualcomm Inc., and GSM services are widely adopted in Europe and elsewhere. Although Samsung and LG sharpened their technological edges for mobile phones on the strength of the domestic CDMA market, they also invested heavily in the development of GSM phones to make inroads overseas. When it comes to CDMA phones in India, LG is slightly ahead of Samsung but Samsung is far ahead of its rival on the GSM market. Industry sources say India's mobile phone market was estimated at 24 million units last year. In detail, GSM phones accounted for 18 million units, while CDMA phones amounted to 6 million units. LG sold 2.1 million CDMA phones, grabbing a 35-percent market share and Samsung sold 1.92 million units for a 32-percent share. LG said the company would intensify marketing in India to solidify its position. The demand for CDMA phones for India is forecast to reach 8 million this year. But Samsung officials said the company does not much care about LG's lead position on India's CDMA market, which is still dominated by low-end models that are priced at about $100. "The CDMA market in India is relatively small and Samsung's brand strategy revolves around upscale models," a Samsung official said. Samsung virtually controls the high-end phone market in Korea with its flagship Anycall brand and is concentrating on multimedia models. On the GSM front in India, Nokia Corp. is the biggest player with a 60-percent market share, or 10.8 million units, followed by Samsung with 3.06 million units, a 17-percent share. LG, which entered the fray late last year, has yet to build up its position. For the entire mobile phone market in India, Samsung has carved out a 20.7-percent market share and LG's share stands at 8.7 percent. In addition to Samsung and LG, other Korean handset makers like Pantech & Curitel, Telson Electronics and Appeal Telecom are considering entering the Indian mobile phone market. By Yang Sung-jin 2004.01.21 koreaherald.co.kr