LG Expects Argentine Market Share to Reach 10% by End-2008
South Korean manufacturing giant LG Electronics expects its share of the Argentine mobile telephony market to reach 10% by the end of 2008 from the current 6%, LG Argentina's mobile telephony director Marcelo Palazzo told BNamericas.
LG Argentina also groups operations in Uruguay and will include Paraguay once LG launches operations in that country, scheduled before the end of the year.
LG expects to end 2007 with a portfolio of 12 mobile devices. "During 2008 we expect to launch approximately eight new models," Palazzo said.
The executive said the unit expects to sell approximately 1mn mobile devices in 2008 compared to 750,000 this year. Some 90% of those sales will be in Argentina.
In Paraguay, LG expects to provide mobile phones to local operator Telecel, owned by European mobile holding company Millicom International Cellular.
In Uruguay, LG plans to end 2007 with a 12-13% share of the local market.
The Uruguayan market is expected to see an estimated 1mn mobile devices from all companies sold in 2007. That number is forecast to drop to 800,000 in 2008, though revenues should be higher as more expensive devices are being sold, Palazzo said.
According to the executive, LG is targeting a market share of approximately 15% in 2008 in Uruguay.
The company is working in Uruguay with Movistar, of Spain's Telefonica and Ancel, the mobile unit of fixed line telco Antel.
Ancel, which launched 3G service in Uruguay last July, is currently offering one 3G-compatible device from LG.
According to Palazzo, sales by the telecommunications unit will account for nearly 40% of revenues generated by LG Argentina. He said that LG Argentina expects revenues for 2007 to reach approximately US$65mn, similar to the 2006 figure.
Posted to the site on 20th November 2007