Korean mobile phone companies such as Samsung and LG will strengthen their WCDMA 3G operations in the second half of 2005 as prospects for the 2G market are far from ideal due to fierce competition, leading to a slowly shrinking market and lowering profit margins. Although worldwide WCDMA phone shipments only reached 20 million units in 2004, the consensus among Korean mobile phone makers, as reported in Korea's Digital Times, is that this number will grow to 50 million units in 2005, of which Europe will account for 30 million units and Japan for 19 million units, with the United States and China also showing strong potential.

 

Samsung's focus used to be on the GSM 2G and the CDMA 2.5G markets, which was reflected by the fact that in the first half of 2005 its shipment volume of 3G handsets did not even reach one million units. However, in the second half of 2005 this volume is expected to increase to three million units, as the company is counting on 3G models such as the SGH-Z500, which performed well for the company in Europe. LG's goal for 3G phones is to ship between six and seven million units in the full year of 2005.