LG targets 10% market share in GSM; unveils new hi-end phone

New Delhi, July 11 (UNI) Consumer durables and handset major LG Electronics today said it targets a 300 per cent growth in the GSM handset business, with its present GSM market share of 3.5 per cent to touch a double-digit figure by next year.

The company also unveiled their first flagship product in the premium phone segment-- 'Chocolate'. The sensuous and sleek phone, priced at Rs 16,000, is the first handset from LG's new 'Black Label' series of designer mobile phones.

''With the launch of the Black Label series, we expect to achieve a double-digit market share in the GSM market by mid 2007,'' LG Electronics Product Group Head, GSM mobile phones, H S Bhatia told reporters here.

He, however, ruled out the possibility of moving away from the CDMA segment saying that the company enjoyed customer confidence in both GSM and CDMA.

LG will come out with variants of LG KG-800, the black-red slider phone, available in 15 select cities in the initial four weeks--in white, pink and white-red-- in the next three months.

LG is committed to increase its network from 11,000 GSM dealers to 20,000 by December this year, Mr Bhatia added.

He completely negated roping in any brand ambassaders for the high-end product saying that, ''Chocolate itself is the real hero.

Roping in a brand ambassader would kill the essence of the phone.'' The company has 11 GSM colour models preloaded with features such as MP3, video recording, bluetooth and an in-built modem. It has not yet roped in any brand ambassaders for any of its phones.

The 15.2 mm phone, aimed at users who value style and technology, has a password protection facility, 1.3 mega-pixel camera and 128 meg on-board memory. The user can enjoy a battery life of 200 hours standby with 3 hours 20 minutes talk time.

On investments, LG Electronics VP (Sales and Marketing) said the Korean major will continue to invest in both the segments in India, adding that an initial funding of Rs 5-6 crore would be pooled in for the promotion of the new phone.

As of now, the company will advertise in fashion, style and in-flight magazines but will come up with TV commercials for Chocolate.

He added that LG Electronics expects the sales to touch the nine million mark in both the segments by next year.

LG Electronics India Pvt Ltd (LGEIL) sold a mere four lakh GSM handsets vis-a-vis 55 lakh CDMA phones last year.

UNI PV RA KN1702