SAMSUNG, LG KEEN TO PROMOTE SMART PHONES

       LG Electronics' chief executive Nam Yong said that LG's main competition was not Nokia but smart-phone makers Apple and Research in Motion.
       His remarks last week show how eager the No 3 handset maker is to raise its profile in the smartphone market.
       LG suffered falling sales in North America, one of its key markets, in the third quarter because of the expansion of the smart-phone market led by Apple and Reserach in Motion.
       Despite their leading positions in the handset industry, LG and it Korean rival Samsung Electronics have a limited profile in the rapidly growing smart phone market.
       The two companies hold a combined share of less than 4 per cent in the global smart-phone market, even as their total share in the handset market tops 30 per cent, according to IDC and Shinhan Investment.
       Some analysts said their failure to expand into the smart-phone market would limt their growth. The smart-phone market is expected to grow and account for 20 per cent of the handset market next year, from 16 per cent this year, according to Gartner and Shinhan Investment.
       Korean handset makers are closely working with operators to boost their weak smart-phone sales and better compete with Nokia, Apple and Research in Motion. They have also launched smart phones powered by various operating systems including Windows Mobile and Android.
       "Apple has its own smart-phone business model, which is not welcomed by wireless opeators," said Jay Yoo of Korea Investment & Securities.
       "Samsung and LG have no choice but to cooperate with operators ... It is an inevitable choice, but not a bad one."
       LG says it will spend heavily to develop competitive smart phones.
       "We plan to release about 10 smart phones powered by Windows Mibile next year," an LG spokesperson said, adding that the company has not decided on how many smart phones it will roll out next year.
       He said LG had previously focused on the Windows Mobile operating system, but that it is now focusing on both Windows Mobile and Google's Android operating system.
       Samsung, the world's No 3 handset maket, also seeks to take on Apple and Research in Motion in the smart-phone market, in which the Korean company holds a 2.7-per-cent share.
       Samsung has introduced a series of new Omina smart phones in September, and plans to double the number of its models next year.