Samsung and LG cut phone sales targets

South Korean mobile phone makers Samsung and LG have lowered 2009 sales targets in response to the global downturn.

Samsung has slashed its target by 8% to 222.8 million phones next year. LG has reduced its aim for 2009 by 12% to 100 million phones.

Global demand for electronics is deteriorating rapidly, sparking warnings from makers of handsets and telecom gear have issued warnings. Shares of Japanese electronics maker Panasonic tumbled 11% last week after it slashed its profit forecast by 90%.

Research company Gartner said last week that global mobile phone sales were set to fall by up to 4% in 2009.

Vodafone has launched a £1 billion cost-cutting drive after reducing expectations for annual revenues for the second time in four months in the face of tough trading in Europe and slowing growth in its emerging markets.

Samsung has a 17.1% share of the global mobile phone market while LG has a 7.8% slice.