LG Electronics expects a sharp improvement in its Middle East and Africa numbers for mobile handsets and notebooks from 2005, following the revamp of its mobility division.
This will be backed by one of the broadest model ranges for both products.
On the handsets, 15 new models including 3G enabled ones are to be introduced in 2005, and the notebooks will see the entry of eight models targeted at the mid and upper market categories.
The division representing these product categories could emerge the most profitable within LG Electronics Middle East and Africa operations within the next three years, according to a top official.
For end-2005, LG's notebook sales in the region are projected to touch $100 million (Dh367.7 million), while those of the handsets could fetch $300 million (Dh1.1 billion).
"Until now we have not been too focused on notebooks, even though LG has been one of the bigger players in monitor and CD-Rom supplies," said K.H. Kim, president for the Middle East and Africa.
"With the restructure of the mobility division, LG is now ready to attack with full strength these two markets this year."
It has also set up a research and development division in the Indian metropolis of Bangalore to support the mobile phone services here. More than 100 software engineers are in place at the base. "This is where we can differentiate ourselves from our European competitors, who do not have dedicated R&D teams for the Middle East," said Kim.
Meanwhile, on its traditional products such as televisions and home appliances, LG expects to continue the double-digit growth patterns of the recent past.
This year, the Middle East office is expected to finally get the go ahead for a television assembly plant in Iran.
The proposed facility could also have a line for room air conditioners.
"The Iranian market is quite closed, and it felt an assembly facility is better suited to develop LG's presence there," said Kim. "We are looking to do a similar thing in Algeria."
High-margin products to drive sales
- This year, LG is looking at 30 per cent growth, with emphasis on high-margin categories such as LCD and plasma television.
- In the first half of 2004, LG's Middle East and Africa operations recorded a turnover of $1.02 billion (Dh3.74 billion).
- The company expects higher margin products to represent more than 50 per cent of its sales.
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