LG seeks 10 per cent mobile market share in 2009

The majority of growth in LG’s mobile handset business in 2009 will come from its increasing GSM device portfolio, as it targets a global market share of 10 per cent, up from 8.5 per cent in 2008, according to the company’s global CEO Yong Nam in Dubai today.

LG’s global CEO Yong Nam said Middle East and Africa has a lot of mobile market share to catch up on, having only 2-3 per cent regionally, compared to 8.5 per cent globally

Nam emphasised that while LG leapfrogged Motorola and Sony Ericsson in 2008 to take the third position globally behind Nokia and Samsung in terms of global handset shipments, LG can still improve its market share further. Nokia leads the market with 39.7 per cent share, followed by Samsung with 16.7 per cent.

Nam added that the company is still lagging behind in the Middle East and Africa (MEA) region, providing a large opportunity for growth. LG’s MEA market share in mobile handsets stands at only 2-3 per cent.

“I just came back from Mobile World Congress where I saw all the displays from our competitors. I also met many different operators and we were able to resonate their reaction about our strategic direction with them. I have a lot of confidence that we can gain market share, and specifically in this region,” Nam commented.

The CEO added that of all LG Electronics’ business lines – which includes home appliances and air-conditioning units – the mobile communication business holds the largest potential this year in the face of the worldwide economic crisis.

Across the company, US$1.5 billion will be spent on R&D this year, up from US$1.3 billion last year, while the marketing budget for 2009 has also increased from 2008.