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LG looking to gain 10pc Mideast market share

DUBAI - The Middle East has become the first region outside of Korea to market notebooks and PCs made and branded by LG Electronics.

The digital leader said the ground-breaking move follows a shift in the Middle East away from non-branded PCs to brand name products.

M B Shin, President, LG Electronics, Middle East and Africa, said: "We are now rounding out our IT product range to cover every spectrum."

In both segments, where for many years LG has been an original equipment manufacturer(OEM), LG is looking to gain a 10 per cent Middle East market share by the end of this year, building to 20 per cent by the end of 2004.

He added: "We are extremely confident of achieving these aims because of a number of positive factors. As the Middle East's leading monitor and optical storage provider, we have already established a strong reputation within the regional IT sector. We are taking advantage of the years of experience we have built up in supplying PCs for other major players, but are putting it into better effect for the overall benefit of the LG brand. The key component of lap-tops is the LCD monitor - technology largely developed by LG - and lastly most PC tenders put out in the region are now specifying branded products."

The first LG notebooks and PCs arriving from Korea as finished goods include the LG Multi-net PC and the LG CyNote Zebra. Both have advanced optical storage devices built in. These products will be positioned at the mid-to-high end of the market to form competition against other established brands. The products will be marketed throughout the region by PC International, LG's IT distributor for the Middle East.

Mohammed Katout, Chairman of PC International, said a number of unique features would differentiate LG PCs and laptops from its mainstream competitors.

He added: "Aside from using its market-leading components, LG's range of desktop PCs will also use a proprietary remote heat exchanger and 'Silent Casing' to reduce noise. The remote heat exchanger also reduces the risks associated with dust and particles building up inside the PC, because it doesn't have a fan mechanism to attract them into delicate areas."

The LG Multi-Net has a unique shape, virtually noiseless, and comes in various sub-models and configurations. The 15-inch screen LG Cynote Zebra 35, at 2.6 kilograms, is one of the lightest laptops on the market. It is available in the Middle East in a dark silver or white pearl colour and has an uninterrupted use of four hours power supply. It will be sold with a carry case as standard and has a built-in CD-Rom.

LC and PC International officials believes the products will make great headway in light of the region's current preference for branded products.

Mr Katout said: "Industry analysis shows that in 1992 non-branded PCs represented 70 per cent of the Middle East market. Today 55 per cent of the market is given over to branded PCs and the gap is closing yearly. This shows that Middle East buyers now have far more trust in branded PCs. Regionally, there is also now a dwindling price gap between branded and non-branded PCs."

Up to 2.2 million PCs were sold in the Middle East and Africa last year with sales growing at a double digit annual rate.

LG Electronics is a global major player of electronics, and information and communications products. LG Electronics is focussed on promoting Home Network and Mobile Network businesses based on cutting-edge multimedia application technology along with Information and Communication Technology as its core business areas.