Top10 Vendors: 7 - LG: Losing Ground

The Chinese magic is yet to play havoc at the Korea headquartered LG, the
world's largest CDMA handset player in India, the fastest growing mobile market.
Despite the sheer marketing of cost effective phones by a couple of Chinese
manufacturers that may have threatened the market share of the LG CDMA and GSM
divisions in India recently, LG made a significant growth of approximately 72%
(in volume) by selling 12 mn CDMA phones during FY '06-07 as compared with 7 mn
the previous fiscal. According to V&D estimates, the company's CDMA and GSM
phone revenue decreased by 6% to Rs 3,140 crore during FY '06-07, from Rs 3326
crore during FY '05-06.

LG makes to the V&D Top 10 this year too. It has improved its market share in
the CDMA handset and FWP phones during the period. During the last fiscal, LG
introduced 7 models: 5 in the low-end category and 2 in the high-end. The surge
in handset sale reflects that the growing market has accepted LG CDMA models
very well. The year has been really good for LG. Firstly, LG entered the premium
lifestyle segment with the launch of its Black Label Series Phone, the Chocolate
phone. This also marked a beginning in the designer segment phone market.
Secondly, LG achieved a landmark sale of 1 million GSM phones at the end of
2006. This year LG plans to achieve a sale of 5 million GSM handsets and attain
top 3 position by attaining a growth of 300%. It plans to pioneer 3G technology.

Last fiscal was a memorable year for LG in India when developed countries as
well as developing nations of the world moved exclusively into color LCDs for
their mobile phones.

LG, aiming to take the camera and video recorder mobile experience to the
mass mobile market, launched its RD 6330 Moviefone, a mobile handset equipped
with spontaneous video recording facility. The handset also offers a camera with
still and sequential shots, and a 4X zoom and flash. The new set, priced at Rs
5,500, came in silver and black finish, a contemporary square design, and a
65,000 color display.

Y Nam

ceo & vice chairman, LG Electronics

During 2006-07, LG's CDMA division gained immensely with its association with
Tata Teleservices and Reliance Communications.

LG has taken special initiatives to ensure a good brand understanding for the
consumer through its LG Shoppe and LG Fone n Fun outlets.

The company is looking forward to having a larger presence in the CDMA
handset space with 3-4 handsets during the year 2007 with 2 low-end and 2
medium-end phones.

Delay in release of additional spectrum to operators and the dilly dallying
approach of the government on 3G policies would have a negative impact on the
CDMA and GSM handset sales in India.