SEOUL, South Korea—Do Europeans like chocolate as much as South Koreans?
If we’re talking food, the question is crazy. But because we’re talking about LG Electronics Co. Ltd.’s new Chocolate mobile phone, which has done well since its release in South Korea in November—300,000 units in four months—the question is appropriate.
In a quarterly conference call, the South Korean handset vendor said it would stake part of its plans for growth on expanding retail sales in GSM markets such as Western Europe. Its chocolate-colored phone—the LG-KG800—will be the market wedge and will be introduced in European markets in May.
The phone adopts the slim design now sweeping the market, and is said to be replete with features.
LG hopes the touch-pad, slide-up Chocolate phone will power sales growth this year. However, analysts warn higher marketing costs ahead of the phone’s debut in Europe will weigh on the company’s mobile phone revenues in the first quarter.
It’s unclear whether LG’s Chocolate phone will hit U.S. shores; an LG representative was not immediately available for comment.
LG is the world’s fourth-largest handset maker, and its market share rests largely on strong sales of CDMA phones in the Americas. But GSM is the dominant air interface globally, accounting for two of every three handsets sold. In GSM, LG is doing only half the business of Sony Ericsson Mobile Communications L.P., the world’s fifth-largest market share holder—thus LG’s interest in a market-breakthrough product that could make significant inroads in Europe. Already, its Chocolate phone has garnered European design awards—the iF Design Award and the Red dot Design Award—for its styling and user interface.
Historically, LG’s emphasis has been on technological advancements rather than fashionable designs or colors, so whether the slim Chocolate phone captures Europeans’ imaginations will provide the vendor with feedback on whether consumers endorse its focus on cracking the GSM market through fashion rather than function.
