HindustanTimes.com 
 
Friday, September 19, 2003
 

Korea's cellphone exports likely to hit a record high: Report 

Associated Press
Seoul, September 19 
 
South Korea is expected to export a record $14.5 billion worth of cellular phones this year in a major boost to the country's economic recovery efforts, the Yonhap news agency said on Friday.

South Korea exported 112 million cellphones worth $9.6 billion last year, accounting for 26.8 per cent of worldwide production. In the first eight months of this year, cellular phone exports jumped 36.1 per cent compared to the same period last year to $7.45 billion, Yonhap said, quoting officials at the Ministry of Information and Communication.

The officials predicted that shipments will pick up during the remaining three months, helping prop up the nation's slumping economy, Yonhap said. The country's gross domestic product -- the sum of goods and services produced -- is expected to be under three per cent this year, compared to 6.3 per cent last year.

The companies leading the export growth are Samsung Electronics Co and LG Electronics Co, which together are expected to ship more than $10 billion worth of cellphones this year. Samsung Electronics, the world's third-largest handset vendor, said that it can reach its sales target of $7.27 billion this year, helped by expanded demand in the North American and Middle East markets.

Samsung Electronics also plans to sell smart phones, which feature an operating system for running software in handsets, in North America in the third-quarter.

LG Electronics, the world's sixth-largest handset maker, also targets $2.73 billion in cellphone exports this year, Yonhap said.

LG Electronics officials said its cellphone exports to the United States are expected to far exceed expectations, helped by aggressive marketing campaigns by the country's two wireless giants -- Verizon Wireless and Sprint PCS -- and faster-than-expected handset replacements as more consumers are switching to camera-equipped phones, Yonhap said.

Meanwhile, Pantech & Curitel Co, South Korea's third-largest mobile handset maker, said on Friday it has received an order to export 2.6 million cellphones worth $430 million to American distributor Audiovox Corp. The CDMA-based phones would include color screens and built-in cameras.

"The deal provides us a stable foothold to enter the US mobile phone market," the company said in a statement.

"This is our first shipment of high-quality phones to the US market and we want to expand sales further in the future," Song Moon-seop, a chief executive of the company, said in the statement.
 
  
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