LG sees mobile phone sales over 70 mn in '06

SEOUL: LG Electronics Inc., the world's fourth-largest mobile phone maker, said on Sunday it expected to sell over 70 million mobile phones globally in 2006, up from an expected 55 million in 2005.

A recovery in the mobile phone business is set to lead an improvement in earnings at LG, which is also the world's number three producer of household appliances in revenue terms.

The South Korean company said in a statement it would focus on increasing high-end handset shipments to its established markets, including Europe and China.

"LG Electronics plans to supply more than 70 million mobile phones in the global market this year," it said. "Our company will seek continuing growth in the handset business through expanding business in fast-growing emerging markets and boosting sales of WCDMA handsets."

LG, which trails Nokia, Motorola Inc. and Samsung Electronics Co. Ltd. in the global mobile phone market, said in October it aimed to sell 100 million mobile phones in 2007. The mobile phone division accounted for 43 percent of its revenue in the third quarter.

LG's plasma display panels (PDP) business will also spur growth this year. The company has revealed an aggressive investment plan to raise its PDP production capacity by 50 percent in 2006, anticipating a boom in global demand for large, flat-screen TVs.

However, the strength of the won poses a problem for LG and other South Korean exporters as a high currency hurts their price competitiveness abroad.

LG said on Friday it was targetting 2006 sales of 24 trillion won ($24.1 billion), marginally higher from its expected 2005 sales of 23.6 trillion to 23.8 trillion won.