By Kim Yoo-chul
Staff Reporter
LG Electronics, the No. 4 manufacturer of mobile phones, hopes to break the wall in Japan, the world’s toughest market, by commercializing its stylish Prada handsets.
LG said on Friday that it will begin selling the 2-megapixel HSDPA touch screen phone from early June at a retail price of some 90,000 yen. The 12.7-millimeter-wide phone will be offered exclusively to subscribers of NTT DoCoMo., Japan’s top mobile operator, a LG spokesperson said.
The model, created by the Italian luxury brand and the South Korean company, has been selling well in the key North American and European markets, in addition to the local market. In Europe, the phone is priced at about 600 euros while in the United States at about $500. Since its debut in 2007, 800,000 units of the phone have been sold in 40 countries.
``It could be a burden for us to clarify this year’s sales target because Japan has been notoriously difficult to penetrate,’’ the official said.
Foreign makers have been struggling in Japan. Finland-based Nokia, which is the top handset maker with 40 percent of the global market share, occupies less than 1 percent, there.
The world’s No. 2 Samsung Electronics is still doubting success for its top-tier phones because its Japanese partner Softbank has been in difficulty trying to sell them. According to industry estimates, foreign handset makers have a combined share of less than 5 percent in Japan.
``We fully acknowledge the reality. However, we are slightly positive for Prada’s performances because spending for luxury goods by Japanese consumers is strong and their zeal for luxury brands is quite high,’’ according to the official. Japan is the world’s biggest market for luxury goods.
South Korea’s Pantech Group is virtually the only maker, which has reaped impressive results. About 1 million units have been sold in Japan. But they were ``low-end.’’
Separately, its chief executive Nam Yong said the weaker won will help its handset unit boost sales. The local currency has lost 11 percent in value against the greenback so far this year. A weakening won helps export-driven LG more competitively in prices across the globe.