Korean Mobile Manufacturers Close in on Nokia

Korean Mobile Manufacturers Close in on Nokia

Korea's mobile phone manufacturing giants, Samsung and LG Electronics, are fiercely chasing the global market leader, Nokia, which has stumbled after changing its focus to the service sector amid the global economic downturn.

The two Korean companies are expected to mark their highest sales number ever in the third quarter with a total of 90 million phones sold. Samsung's market share is forecast to reach 21 percent, a 4 percent increase from the same period last year. Samsung officials say the surge in sales and market share comes from rapidly growing demand in Europe and China and increased sales of high-end mobile phones.
Nokia's third quarter sales plunged by 20 percent to US$15 billion compared to a year ago, recording a deficit for the first time in 13 years. Its market share dropped to 37.8 percent, the first time since 2007 it has been below 38 percent.

Sony Ericsson and Motorola have failed to show signs of recovery with their market shares both at a mere 5 percent, allowing Korean companies to gain more influence in the global market.
Analysts forecast the difference between Samsung and Nokia's market shares will narrow to a single digit by 2011. If the gap decreases as predicted, experts say it is highly possible the global industry will be led by the top two competitors.

Arirang News / Oct. 20, 2009 12:18 KST
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