LG handsets go on sale

The South Korean electronic goods manufacturer LG Electronics has begun selling handsets in Argentina and expects handset sales to account for 40% of the US$100mn sales it expects in Argentina this year, local daily El Cronista reported. LG Argentina has already signed supply deals with mobile operators Unifón and Personal, and is in talks to supply CTI Móvil. Since three of Argentina's four operators operate GSM networks, LG will only bring GSM handsets into the country and therefore has not approached CDMA operator Movicom. The supplier aims to obtain a 7% market share and is banking on a continued recovery of Argentina's mobile market, which imported 7.5 million handsets in 2004. There are five models on sale so far, made by LG in Brazil, and the firm plans to invest US$1.5mn to position itself in Argentina. The handsets are designed to cater for the mid-range and high-end market. LG exited Argentina following the 2002 economic crisis, but returned last year to supply white goods and home entertainment equipment. The supplier has three handset assembly plants in Mexico, and does not consider an Argentine plant out of the question, the paper quoted LG Argentina president Ki Mun as saying.