LG outlines ambitious plans to dominate local PC market
LG Electronics plans to capture 10% of the market with its range of PCs and notebooks by the end of 2003.
LG Electronics is charging into the ultra-competitive PC hardware market. The Korean company, better known in the local market for its monitors and storage products, plans to capture 10% of the market with its range of PCs and notebooks by the end of 2003.
Furthermore, LG has set itself an ambitious target of 20% market share by the end of 2004.
“We are now rounding out our IT product range to cover every spectrum,” says M. B. Shin, President, LG Electronics, Middle East and Africa.
The Middle East is the first market outside Korea that LG has taken the decision to introduce its own branded hardware. The move has been taken in response to a perceived groundswell for branded PC hardware.
“This move into the regional notebook and PC sector is a prime example of LG’s strategic shift away from [original equipment manufacturer] business and its determination to build upon its own brand equity,” comments Shin.
LG believes its position in the local monitor and optical storage market will benefit the organisation as it plans to crack up the local PC hardware market. Also, the vendor will leverage its OEM experience to bring products to market.
“We are confident of achieving these aims because of a number of positive factors. Firstly as [a] monitor and optical storage provider, the company has already established a strong reputation within the regional IT sector,” says Shin.
“Secondly 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. Thirdly, the key component of laptops is the LCD monitor – technology largely developed by LG – and lastly most PC tenders put out in the region are now specifying branded products,” he adds.
LG plans to introduce its initial product offerings, the Multi-net PC and the CyNote Zebra machines in the coming weeks. Both machines boast 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,” said Shin.
The products will be marketed by LG’s IT distributor, PC International. According to Mohammed Katout, chairman, PC International, LG hardware will make a real impact on the local assembly PC market.
“Industry analysis shows that in 1992 non-branded PCs represented 70% of the Middle East market. Today 55% 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,” he adds.