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LG Prepared for Handset Price War

By Staff Author | May 27, 2008

Concerned about a potential price war, South Korean handset maker LG reportedly said it is prepared to cut handset prices if rival Nokia does first. The announcement comes amid talk of Nokia possibly cutting prices to gain market share in the United States as well as possibly re-entering the South Korean handset market.

LG’s vice president for marketing told Reuters that the company is “carefully watching” rival Nokia.

The South Korean handset maker sold a record 24.4 million mobile phone models during the first quarter this year, overtaking Sony Ericsson as the world’s fourth largest handset maker. The company hopes to sell 100 million handsets during the year.

Nokia has not made any official comment about plans to cut handset prices, but has said that while it is “interested” in the Korean market, it has not unveiled any products there.

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