LG to be the world’s third largest smartphone maker in 2H13 – Samsung Securities

A Samsung Securities investment report states that LG Electronics could be the world’s third largest smartphone maker in 2013, replacing Nokia. LG currently occupies the fourth place among the largest handset makers worldwide. Meanwhile, it held the third place position back in 2007 to 2008, when LG’s feature phones experienced the peak of success.

The Samsung Securities report cites LG’s new products with improved quality as well as its global expansion in terms of sales as the reasons that will propel it to the number three spot. The report cites in particular the Optimus G smartphone as a handset that is poised to beat expectations in South Korea and abroad when it arrives in international markets this November. Likewise, it makes mention of Optimus G “successors” like the V2 and GK which should further boost LG. According to the report, it is crucial, however, that the Korean market receives the Optimus G well, as it has done in the past with LG’s other popular handsets.

Samsung compares the current situation to what happened in 2007 to 2009, when the feature phone market matured. Among LG’s current competitors are the second-tier players HTC, which had a 6.3% market share in the second quarter this year; Nokia, which had 7%; and Research in Motion, which had 5.3%. Among these companies, however, LG appears to be the most competitive globally, according to the report. Meanwhile, companies like Motorola, Sony, and others based in China are aiming more at regional markets.

The report further states that “cost competitiveness” is vital in the smartphone battle. To ensure this, a company should have “an established supply chain and sufficient global coverage to ship 10m smartphones per quarter.”

The investment report suggests a BUY on LG Electronics, with a price of KRW100,000. Furthermore, it notes how shares have increased 23.7% in anticipation for the LG Optimus G smartphone since July 25.

via androidauthority, equity