Korean phonemakers on the rise, but have nothing new to show at CES

By Michal Lev-Ram

LAS VEGAS — While Korean mobile phone manufacturers LG and Samsung Electronics made significant headway in mobile sales last year, they’ve come empty-handed to the Consumer Electronics Show, a showcase for companies to introduce their hottest new gadgets.

Ehtisham Rabbani, vice president VP of product strategy and marketing for LG’s mobile phone business, said cell phone sales rose 28 percent in 2007 but he was vague about what new mobile gadgets consumers could expect to see in 2008.

“We plan to keep doing what we’ve been doing in 2007,” says Rabbani.

Samsung, meanwhile, will unveil plenty of consumer electronics like Wi-Fi enabled HD video camera and new flat screen televisions in Las Vegas, but the only “new” phones were new only to the U.S. market as they’d already been introduced in other countries.

In 2007, LG — the fifth largest mobile phonemaker — unveiled two new touchscreen devices, the Venus and Voyager. Samsung, meanwhile, overtook Motorola (MOT) as the No. 2 cell phonemaker in the world late last year behind Nokia.

“Samsung gained a lot this year partly because Motorola has been doing so poorly,” says Tina Teng, a wireless analyst with technology research firm iSuppli. “It’s a big win for them.”

Teng says that in addition to Samsung benefiting from Motorola’s recent poor performance, the Korean company also prospered by concentrating on mid-to-high range handsets to gain market share in a highly profitable segment. She says Samsung is now the No. 2 player in the European market — Nokia’s (NOK) home turf. Key to Samsung’s success there has been stylish, multimedia-centric mobile phones.

Both Korean phonemakers could have an advantage over Motorola in the fast-growing Indian market because they already have brand recognition in that country due to their lines of household appliances like refrigerators, televisions, and washing machines.

While Samsung’s market share has been growing in Europe and Asia, it has yet to have a big hit in the U.S. market. And LG, while strong in sales of CDMA phones sold primariy in the U.S., Japan and Korea, it’s weak in development of the GSM phones used in most countries.

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Filed under CES, LG, Mobile, Motorola, Nokia, Samsung

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There are 2 major biggest handset maker among the top 5 vendors, Samsung and LG. they are both from South Korea…a small Asian country. - even smaller than NY state -
i’m very impressed by their performance in global handset market, so innovative, well designed… no doubt that they are global top
They have large percentage of global market share,o well, still behind on Nokia though.
both Samsung and LG are keep launching new models and even gaining large market share in 3G market in Europe as well.

Posted By Kate, Long Island, NY : March 19, 2008 10:20 pm

Samsung is one of major brand from Korea but it does not represent Korea. I like Samsung’s customer supporting that respond customers’ questions in one day with fluent informatio with kind tone. However, Samsung is just electronic maker and I can use any kind of brands that can provide better quality, kindness, and price. I don’t mind use Sony, Motorolla, or iPhone… I think that Samsung needs to try be a global company instead of Korea domestic company. Samsung has several factories in America, Europe, and China as well as Korea. For example, Samsung operate memory factory in Texas.

Posted By KR, ~ KOR : February 28, 2008 11:07 am

Is this article revival of CES? It already two months had passed. CES was on Jan, and it is Feb. There were several mobile show and exhibitions after CES. Mobile Trend and fashion are changed very quickly. One month ago’s story is no more news for users.

Posted By KR, ~Kor : February 28, 2008 10:28 am

Have you checked 3GSM Shows? That is all about Mobile Phones and you may find out some new stuff from Samsung.

Posted By KR, KOR : February 28, 2008 10:17 am

Here is some proof ..
http://en.wikipedia.org/wiki/Cobasys
Imagine if the USA didnt invent the Rechargeable battery that nice cell phone you have in Korea would be a nice corded Rotary Phone.
And if we didnt pioneer the telephone
it might even be a nice Morse Code Telegraph.
When it comes to Inovation and Technology of the World ,The United States will always be the TOP DOG.

Posted By Will Dziekanowski, Holmes ,N.Y. : February 16, 2008 9:05 pm

Moose from Rochester,
Are you nuts? The United states never copied anything from asian technology, Its the other way around.
The cell phone itself…American, The 1st compact affordable car , The ford Model T, The first music player, Thomas Edison. Before you comment
and call the U.S.A a copycat you should try reading a little history.
The semiconductor, USA
, The Micro processor ,USA. Television USA 1930 Worlds Fair.
Here are some facts
1)Japan copied the singer sewing machine
post World War 2 , Under a technique
called Reverse Engineering.
2)Matushita(panasonic) was found guilty in a coporate suit in 2003 for making Rechargable Batteries without paying royalties to OVONICS ,Yes, USA
invented the Nicad ,NIMH ,Lithium battery.

Posted By Will Dziekanowski, Holmes ,N.Y. : February 16, 2008 8:51 pm

I am from Korea and it was nice article. I think that Korean companies may need to increase their entertainment and product Development for their fans. So I used to use Nokia mobile with economic deal in the U.S. I tried to buy Samsung but it was a little bit expensive. Now I am using Samsung Anycall and I am satisfied with my gadget. I want to try expensive Nokia and some Japanese Phones. Moto is not attractive too much to me.

So this is my experience for Samsung, Anycall. It was a little bit expensive. It was around 600-700 USD but Somebody gave it to me as present. I am satisfied with its quality, design and functions compare to my previous Nokia phone. Of course I have some dissatisfaction and I want to use more expensive and better mobile phone. I can take photos, music, games, and do multimedia things. In addition, I can record phone call with it, so I could got evidence for my law problem. I’ve talked with my enemy and he accidentally said his things. Needlessly to say, Camera is one of good tool for my car accident.

Well, anyway, I want to change my phone LG Prada Phone because it is expensive fashionable phone. I wish somebody give this phone to me as my present, but I don’t think that it will be happen to me.

Posted By Jin Choi, Changwon, Korea : February 5, 2008 12:18 pm

Go to South Korea…check out the cell phones…feel free to change your opinion once you’ve had that experience. Korean innovation takes a much different approach than US or European innovation.

Why do US auto makers market smaller, compact and efficient vehicles in places like Japan? Do you think the Japanese downplay American auto manufacturers because they ‘copy’ Japanese innovation, design concepts and philosophy?

BTW, every MOT phone I had was, hands down, a POS.

Posted By Moose, Rochester, NY : January 22, 2008 8:11 pm

I am not suprised if Samsung and LG who do not have anything to show at CES. Most of their cellphone products are COPIED from their competitors like Nokia or Moto. I don’t like Apple but i do admire their innovation. Samsung and LG are just not Apple, Nokia, or Moto.

Posted By Jeff, NYC, NY : January 7, 2008 9:26 pm

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