Korean phone makers turn home advantage into global sales

South Korean handset giants LG and Samsung are using strengths in their home market to build a strong position in international markets, according to new research. 

Both companies have been more successful in the US than local competitors in selling phones with advanced entertainment features. Advanced phones, with features such as mobile TV, are already extremely popular in South Korea.

"South Korea leads the world in the adoption of mobile entertainment features and services," said Michael Cai, director of broadband and gaming at research firm Parks Associates. 

"Korean phone manufacturers have been able to take that experience and translate it into success in the American market, balancing good design and advanced feature sets with reasonable costs."

A survey of 2,000 US residents found that 12 per cent of LG phone owners, and a similar percentage of Samsung owners, said that their phones had mobile TV features, compared to only eight per cent of Motorola users and no Nokia users.

Nokia also fell behind the Korean firms in other entertainment features. Parks Associates said that phones from the two Korean manufacturers were three times more likely than Nokia phones to allow users to buy music online.

Cai called for Nokia to introduce more advanced phone models if it is to succeed in the high-end and midrange markets.

"The challenge is even more acute now that Apple's iPhone is stirring up competition in the premium handset market," he said.