LG Electronics (066570.KS: Quote, Profile, Research), the world’s No.4 handset maker, is closely watching rival Nokia (NOK1V.HE: Quote, Profile, Research) amid talk the top-ranked mobile phone maker may cut its prices and re-enter the South Korean market later this year.
Shares in LG Electronics tumbled more than 8 percent on Monday as investors gauged the impact of potential price cuts by Nokia. But an LG executive said the firm was generally positive about the industry this year.
“We are interested in the Korean market and investigating it, but we have not unveiled any products for that market,” said Nokia spokesman Kari Tuutti, declining comment on future pricing.
LG shares ended down 3.8 percent, while Samsung Electronics (005930.KS: Quote, Profile, Research), the world’s No.2 handset maker, closed down 4 percent http://payday-badcredit.com. The main Korean market fell 1.5 percent.
“We are carefully watching Nokia,” Chang Ma, LG’s vice president for marketing strategy, told Reuters in an interview.
Analysts were split on the impact of a Nokia move.
“Nokia’s handset price cuts, if they actually happen, will certainly not be applied universally to all its models,” said Lee Sung-june, an analyst at SK Securities.
“Besides, Nokia and LG’s handset strategies are different in that while Nokia is more about offering cheaper models, LG is more focused on technologically advanced models.”
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