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LG Electronics reported Tuesday that it sold 27.7 million mobile phones at home and abroad in the second quarter, up 14 percent from the previous three months, making the sales figure the world's fourth-largest.
Motorola, once the global industry leader, disclosed Thursday that its second-quarter shipments of handsets grew only 2 percent from the previous quarter to 28.1 million units, retaining its status as the world's No. 3 mobile phone seller.
According to market researcher IDC, LG has a global market share of 9.1 percent, a hair behind Motorola's 9.2 percent. Nokia Corp. of Finland was the top seller with about 40 percent, followed by South Korea's Samsung Electronics Co. with 21 percent.
Industry watchers say LG Electronics has a strong chance of trumping Motorola in the July-September period, as its models have been gaining popularity in overseas markets -- a marked contrast to Motorola's prolonged slump.
"Given the current pace of sales, LG is most likely to outperform Motorola in the third quarter," said Park Won-jae, an analyst at Daewoo Securities.
Although a more detailed data analysis is required, Motorola's better-than-expected performance in the June-April period seems to have stemmed from non-fundamental business activities, such as increased restructuring efforts, he said. The positive forecast is backed by LG's high growth rates of shipments and turnover, which towered above those of larger rivals.
LG's 14-percent quarterly gain in sales was much higher than a 9-percent increase posted by dominant industry player Nokia. Samsung's handset shipments fell 1 percent in the second quarter.
LG's second-quarter turnover soared 18 percent from three months earlier to 3.75 trillion won (US$3.7 billion), the highest among major handset players. Samsung and Sony Ericsson recorded 5 percent and 4 percent gains, respectively, while Nokia's sales slumped 2 percent. Joo Sang-shin, an analyst at Dongbu Securities, said that LG has posted stellar performances thanks to its ability to meet the changing needs of customers. "LG seems to be adapting itself quickly to the latest 'touch screen' trend in handsets, sparked by Apple Inc.'s iPhone, and is expected to put up a good fight in the upcoming quarter as well," Joo said.
LG's presence in North America, Motorola's home turf, is becoming an increasing threat to the U.S. company. LG recently beat Samsung to become the No. 2 mobile phone seller in the U.S. and released its latest touch-screen model, nicknamed "Dare," last month to compete with the third-generation iPhone.
"Our sales are growing sharply throughout the world, with our strategic products showing continued success," an LG official said.
The company aspires to become the leader of the global handset market by introducing products that fulfill various customer needs, he added.
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