Mobile phone market freezes in Korea
The Korean mobile handset market is sliding rapidly, In the third quarter of 2008 the sales reduced 27 percent and the outlook of the fourth quarter doesn’t look promising.
As the credit crunch hits globally this adds to low consumer confidence which in-turn reduces the mobile handset sales. Consumers are delaying new mobile purchases and the demand for WCDMA mobile phones which had a very positive effect on the phone industry for the first half of 2008 has reduced sharply. In July there were 2.1 million handsets sold in Korea, as the handset sales started its decline in August then held on at 1.67 million in September.
Samsung Electronics was the high flyer in Korea claiming 48 percent of the mobile phone market, while LG takes 27 percent and Pantech Group taking 17 percent. However with potentially a large increase of foreign phones coming into the Korean market in the fourth quarter of 2008, the slice may fall slightly for the Korean Brands.