I can imagine teenagers really liking it." "The Chocolate phone is a more playful, narrative phone," says Peter Zec, initiator of the Reddot Design award in Germany. It boasts 128 megabytes of built-in memory and Internet access. "This is designed to give users emotional satisfaction with a surprise," Cha says.Īlthough it is only 16.5 mm thick and weighs 88 grams, it packs a 1.3 mega-pixel camera that also doubles as a camcorder and an MP3 music player. Slide the phone open and its touch-sensitive keypad glows red and its LCD screen-which sleeps when not in use-suddenly light ups. LG incorporated other features to give the phone a special character. Unlike Razr or Nokia's 8800, that ostensibly demonstrate high-tech features, Chocolate's designers sought extreme minimalism to make it look like a black chocolate bar, not a phone. "Just as Apple's iPod created a new culture among users of digital music players, Chocolate connects to emotions of its users," says Cha Kang Heui, LG's chief handset designer. LG claims Chocolate is more than fashion candy. "I don't think LG is out of the woods yet," warns Greg Roh at Korea Investment Securities. Nokia recently rolled out its award-winning 8800 cell phone, while Samsung introduced three super-slim phones under its "Ultra" line. "Now the Chocolate phone will give us a chance to make another leap forward," he predicts. He notes that LG emerged from virtual obscurity earlier this decade to become the fourth biggest handset maker-after Nokia, Motorola, and Samsung. "We have been building up muscles for growth," says Bae. LG argues the six-month loss was due largely to increased marketing expenses and investments and that the company will move into the black in the second half. Its mobile phone business posted an operating loss of $3 million, which follows $32 million in red ink during the first quarter of 2006. On July 19, LG reported a $10 million net loss in the three-month period ended in June, thanks to troubles with its mobile-phone and flat-screen businesses (see, 7/11/06, "LG.Philips LCD Swings to Loss in 2Q"). If their hopes materialize, it would be a much-needed cash infusion for a company struggling big time with its handset business. come August, hopes the $500 phone will be a 10 million seller by the end of June next year. LG, which is expected to launch the Chocolate in the U.S. Another 500,000 have been sold in South Korea since its premiere there last November. In less than three months since its global debut in May, some 1.4 million phones have been sold in Europe, Asia, and Latin America. And the handset was recently ranked the best-selling mobile phone by Carphone Warehouse, Europe's biggest mobile phone retail chain. The Chocolate garnered industry accolades such as the prestigious European 2006 Reddot Design and IF awards for its excellence in design and user-interface, and has been drawing a lot of orders from distributors. The dark, rectangular Chocolate phone is certainly a head-turner, and LG definitely needs a winner to save its money-losing mobile phone business. "It is a breakthrough product for us," says LG Executive Vice-President Jae Bae. Nokia and Samsung have unleashed their design talent on this segment, and now LG executives think they have a blockbuster in the making with the company's sleek Chocolate phone. Has LG Electronics finally hit a sweet spot in the faddish mobile phone market? Ever since Motorola scored big with its ultra-thin clamshell fashion phone called the Razr, back in 2004, a sort of slim-is-in design ethos has gripped the handset industry.
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