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LG eyes 15% handset marketshare in Oman

MUSCAT: South Korea's LG Electronics is looking at capturing 15 per cent of the mobile handset market in Oman through new model launches, especially in the smartphone category, a senior official said.

The company, which sold more than 120 million handsets worldwide last year, expects to cash in on the emerging global trend of convergence of display, mobile computing and communication to catch up with the leaders in the smartphone category, H.S. Paik, president of LG Electronics Gulf FZE, the Middle East unit of the South Korean chaebol said. LG claims to be the leader in the code division multiple access (CDMA) category worldwide in handsets while trailing behind at least two players in the global system for mobile (GSM) category, he said. "Wireless (communication) is an important part of our business and we are now focusing on GSM (handsets)," he said.

The smartphone category was not a big business until last year but is likely to see a growth in the shape of a hockey stick, he said. A smartphone is a mobile phone with various multimedia features such as sending and receiving e-mails on a real time basis. The phones are usually based on an operating system that allows it to run various applications related to productivity and entertainment.

"The lifestyles of people and their ways of communication are changing," he said emphasising the market potential of smartphones, which would be the company's key focus this year. "Even if you enter the market late, you can still grow if you can cater to certain unmet needs of the consumers," he said while justifying LG 's late entry into the smart phone category which is currently dominated by Research In Motion (RIM), makers of Blackberry handsets and Apple, makers of the iPhone.

According to Paik, the mobile business of LG is expected to see a growth of 35 per cent during the current year and the GCC region would also see a strong growth. The region contributes about seven per cent to the company's global sales but its favourable demographics would be beneficial for the company. "GCC customers are less likely to change brands but the younger generations are willing to change models especially in UAE (United Arab Emirates), Qatar and Kuwait," Paik, who oversees LG 's sales operations in 10 countries across Middle East and Africa, said.

MoU signing
He was here to sign a memorandum of understanding (MoU) with Al Khanjar Infosystem to use the latter's extensive distribution network across the Sultanate. Al Khanjar is part of the Khimji Ramdas Group. The distributors of Al Khanjar Infosystem is expected to begin offering LG mobiles and accessories from May onwards, the two firms said in a joint statement.

LG also plans to launch handsets with other unique features such as solar powered batteries, wider touchscreen phones, dual SIM phones, among others during the second half of this year to boost its presence in the market, he said. "Typically, the third quarter is a good one for this region as certain events such as the Holy Month of Ramadan falls during this period and sales tend to be higher," he said.

The LG official also said stronger and stable economic growth in countries such as Oman and Qatar would buoy its sales and the consumer confidence data in the UAE also point towards a positive trend.

© Times of Oman 2010