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LG Electronics’ Andro-1 |
By Kim Yoo-chul
Staff Reporter
LG Electronics has introduced its first Android-based smartphone, "Andro-1," for KT customers.
LG spokesman Yoon Won-il said the Andro-1 will lay the groundwork for the company to partly ease concerns over its weaker smartphone-related portfolio and smartphone hopefuls will be able to pick up the handsets at "reasonable prices."
The Andro-1 is featured with a QWERTY keypad, enabling users to easily search the Web, send e-mails and use other Google-provided services, while giving greater access to its application store dubbed "Android Market," LG said Wednesday.
The latest digital device is the second of its kind in the South Korean market that adopts Google's open-based mobile platform. Last month, Motorola of the United States launched the "Motoroi" through top mobile carrier SK Telecom in local stores.
The world's third-largest mobile phone manufacturer said the handsets will be sold via a deal with KT, the nation's largest-fixed line operator and second-biggest mobile carrier. The smartphone will cost around 600,000 won ($530).
With a two-year KT contract on the basis of its 45,000 won per month smartphone billing system, the latest gadget will be free to these customers, the company said.
The release comes at a time when the local smartphone market has been booming since the arrival of Apple's iPhone in November last year.
Major telecom carriers are revising up their smartphone sales targets, while even foreign handset makers, including Motorola and Sony-Ericsson, are seeking "second chances" with fresh lineups in South Korea.
Samsung Electronics spokesman said it plans to launch its first Google phone in the third week of this month and added the upcoming model is in the final stages of software stability.
South Korea's mobile phone market is one of the world's most vibrant, with 45 million users in a population of 49 million.
Research firm ROA Group Korea earlier predicted that smartphone sales would more than triple to 1.85 million in 2010, compared with 500,000 last year. That would just make up some 10 percent of total handset sales in Korea.
Still Icy Road
Despite the release, analysts in general remained unchanged on their earlier negative stance for LG's smartphone business. Citing the lack of strategy details in the segment and difficulties in improving software systems, they say LG will see flattened moves in its stock prices.
LG, which wants to secure a double-digit share in the global smartphone market by 2012, hopes to defend falling phone margins with some 20 premium smartphone offerings based on the Android operating system this year.
LG saw phone business profit margins falling close to zero in December as it had to spend heavily on marketing of its simpler models.
"The Andro-1 uses a less-updated 1.5 version operating system, which is far behind Motoroi's 2.0 version and Samsung Electronics' 2.1. The 3.0-inch flat-screen is too small, while the user interface is hard to use," an industry source said.
"LG aims to eat up some more shares with less-specified phones. That means it still lacks detailed strategy in smartphones. LG thinks of Andro-1 as a small litmus test."
It aims to sell 140 million mobile phones this year, up from 117 million last year to claim about 10 percent of the global market.
yckim@koreatimes.co.kr
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