Reference Auto

Unlike its Korean rival in India (Samsung), LG has remained in the backburner for quite some time but is hoping to make the most of India’s telecom revolution (read 3G) by rolling out its latest smartphone, the Optimus One.

The new handset is powered by the Android operating system and carries a price tag of Rs 13,500. The smartphone runs on Android 2.2, has Froyo and comprises an 8.1-cm display, 3 MP camera and expandable memory up to 32 GB. With Froyo, you can share your internet connection with other devices. Considering the features, the handset is economically priced.

An upbeat LG Electronics India managing director Moon B. Shin said, “Over the next six months, we will launch 10 more devices in the Optimus series, priced in the range of Rs 8,000 to Rs 30,000.”

He added, “smartphones are poised to spur growth in the Indian mobile market in the coming years and LG’s focus on innovation based on thorough consumer research places us squarely at the forefront of that evolution”

LG currently has 10% share in the smartphones market and if it can offer a string of innovative features, price its phones competitively and come up with new technologies, it can hope to enhance its market share. The company will also have to take a closer look at its brand-building strategy.

“Next year will be the acceleration phase for LG mobiles and investments have been put in place to ensure that we grab at least 15 per cent of market share in the smartphones segment,” Shin said.

According to him, the company plans to ramp up production capacity at its Pune plant from 60 lakh units to 1.5 crore by next year.

The company plans an ambitious 80 per cent revenue growth in mobile business by 2011. LG expects its revenues from the mobile business to reach Rs 2,500 crore by next year.

LG’s business group head (mobile communications) Vishal Chopra said, “Our focus is to simplify smartphones for consumers and make them experience as to how applications can improve life. Simultaneously, we are looking at expanding the retail presence by 25,000 outlets and 500 exclusive LG mobile galleries. Next year, we plan to launch 55 new models, out of which 40 per cent will be smartphones and our marketing investments would be aligned accordingly.”

Released in Europe last month, the LG Optimus One has sold more than one million units. The handset is also available in the US, where Sprint sells it as LG Optimus S while T-Mobile as LG Optimus T.

So, with such encouraging figures worldwide, will LG see a rerun of its sales in India? This is unlikely in the short term when the overall handsets market could rise by only around 20 per cent.

Even with the onset of 3G technology, it is unlikely that the country’s smartphones market will surge in line with global growth trends, currently at over 90 per cent. So, LG Optimus can expect to compete in a market that could grow around 30 to 40 per cent in the long run. However, one plus is that LG Optimus One is offering the latest Android phone (version 2.2) at a very affordable price and the latest version is only available with HTC Desire, Samsung Galaxy Tab and OlivePad.