LG India is targeting smartphone revenues of about Rs 2,000 crore by 2014.
According to GfK, about 50 million smartphones are expected to be sold in India. LG is looking at 10 percent market share in smartphones by 2014.
“We expect 10 percent of target to come from G2 which should be about Rs 200 crore, from total of about Rs 2,000 crore,” said LG India’s managing director Soon Kwon.
For comparison, Micromax, the second largest smartphone vendor in India, is looking at clocking $1 billion revenue during fiscal 2014 against Rs 3,268 crore in last fiscal.
Karbonn, rival of Micromax and LG, has set revenue target of Rs 4,000-5,000 crore in FY 2013-14 against Rs 2400+ crore in FY 2012-13.
Apples India sales increased 51 percent to Rs 3,030.11 crore in its 2013 fiscal from Rs 2,003.9 crore in previous fiscal. But its profits have decreased to Rs 112.66 crore from Rs 311.5 crore.
Apple is targeting around Rs 1,000 crore sale from Apple iPhone 5s alone during the fourth quarter of 2013.
Competing with big smartphone vendors, LG is yet to gain market share in India. Interestingly, Canalys data does not show LG in the top 5 smartphone market share list in Q3.
According to smartphone market share data by Canalys, devices vendor Samsung leads the Indian smartphone market in the third quarter of 2013 with 34 percent share. Micromax (21 percent), Karbonn (10 percent), Sony (6 percent) and Nokia (4 percent) are the other smartphone vendors. Apple, though it does not find a place in top six smartphone vendors in India, has around 1.5 percent share in the market.
The Korean consumer electronics major has launched a series of smartphones in high-end segments ranging from Nexus 4 in partnership with Google priced at around Rs 26,000 to 4G-ready LG G2, PTI reported.
LG is now gearing up to launch Nexus 5 in which the software of the phone will have direct updates from Google.
Kwoon said the company will look at setting up manufacturing mobile phones in India after meeting its target of 10 percent market share.
LG has earmarked Rs 100 crore for marketing and expansion of retails sales network to push sales in the country.
Recently, Karbonn and Micromax announced their plans to assemble or manufacture smartphones in India.