Add to del.icio.us     Digg this

May 28, 2008

South Korean mobile phone manufacturer LG Electronics said it is prepared to reduce cell phone prices if its rival Nokia does it first.

LG is concerned that an ugly price war might significantly reduce its global market share.

The news announcement comes amid talk of Nokia possibly cutting prices to gain market share in the U.S. as well as possibly re-entering the South Korean handset market.

LG sold a record 24.4 million mobile phone models during the first quarter of 2008, overtaking Sony Ericsson as the world’s 4th largest handset maker

LG hopes to sell over 100 million handsets during the year.

LG’s vice president for marketing said that the company is “carefully watching” rival Nokia.

For its part, Nokia hasn't made any official comment about plans to reduce handset prices, at least not yet.

However, it has said that while it is still interested in the Korean market, it has not unveiled any products there as of today.

Add to del.icio.us     Digg this

    This article was featured on Business 5.0.

Source: LG Electronics.