LG Expects 80% Jump in Handset Sales in 2006

The Brazilian division of South Korean electronics colossus LG expects to record an 80% jump in mobile phone sales to 6.3 million units in 2006 from 3.5 million in 2005, LG announced at the Telexpo in São Paulo.

The company invested US$60mn in a new factory in 2005 and aims to reach its entire production capacity of 6.5 million before the end of 2007, according to Carlos Melo, LG's commercial director for mobile phones.

In 2006, LG's Brazilian unit expects to reach revenues of US$1.8bn, up from US$1.3bn in 2005, when US$450mn came from the mobile phone division. In 2006, the handset business should account for 33% of the company's overall revenues.

LG also wants to double exports of handsets to account for 10% of its local production.

The company also launched four new GSM and four new CDMA models at Telexpo. The new mobile phones will be launched in Brazil in the first half of 2006, according to the company.

BNamericas.com"

Posted to the site on 11th March 2006