LG Electronics, which has fared poorly in the recently announced quarterly earnings report due to a record deficit in the mobile phone business, is vying to recoup the losses by introducing the slim-slide type 'chocolate phones' to overseas markets. Since the 'chocolate phones' have gained much popularity in the Korean market recently, company officials anticipate that they can act as a savior for improving the company's performance during the second quarter. Accordingly, LG Electronics has stepped up efforts to boost their sales in overseas markets. To begin with, the company launched the product's sales in China on April 13 and plans to follow suit in the European market by kicking off a sales promotion in the U.K. in May. In the event the product's sales fall short of expectations, however, it is expected that LG's mobile phone business could see a total realignment. According to the company earnings report released on April 19, LG Electronics incurred a loss of 30.9 billion won in the mobile phone business, the largest deficit in the company's history. The sales drops in the United States and Europe are reckoned to be the major factors that have contributed to the company's dismal performance in the first quarter. The mobile phone sales in Europe has dropped to 12% from 26% to account for the company's total sales while sales in North America have fallen to take a 42% share from 44% in the preceding period. Kwon Young-soo, president and chief financial officer of LG Electronics, explains, "In a marketing environment where our sales rely on channel partners, sales have plunged in the United States as Motorola launched an aggressive marketing by providing cheap products to Verizon, the largest supplier in the United States In the case of Europe, the sales of WCDMA handsets with high profit margins have dropped by a whopping 75% due to offseason." Against such a background, LG has recently begun to shift its supply channels to those based on direct marketing to consumers rather than one that relies on channel partners. Accordingly, LG's stakes and expectations are high as 'chocolate phones' will be launched in earnest on the European market, the world's largest open market.