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Dubai: LG Electronics expects to sell 10 million handsets this year in Middle East and Africa (MEA), an increase of 100 per cent compared to five million handsets last year, a top official said.
"We are putting a lot of resources on our mobile phone business. Our handset sales have recorded over 100 per cent growth in 2006 and 2007. But when compared to the leaders, we are still at the lower end as we entered the market five years late compared to others," Ki Wam Kim, CEO of LG MEA regional company,, said.
New models
The firm expects to launch 20 models this year. Every month one or two models. The company will be launching Venus model with three mega pixel camera and two models in the low-tier segment soon. By March, it will have six models in the market.
"Till last year, we used to sell what the group develops. But from this year, we are developing exclusive tailor-made products for this region. About 80 per cent of the products will be tailor made apart from some models launched globally," he said.
"We will provide a couple of features extra in every handset compared to Nokia, which is the leader. It will at least six months for our competitors to copy our features. It is a secret and I cannot disclose it now," added Wam Kim.
All our models did very good last year except Shine. Shine did not do well in this region, but it was a huge success in US and Europe.
Market share
LG enjoys about four per cent market share in top-end mobile phone segment and this year targets 10 per cent market share. LG has 22-25 per cent market share of the electronics industry.
US is the biggest contributor to the group's growth followed by Europe and MEA comes seventh out of eight regions and the last is Commonwealth of Independent States (CIS) countries. "Our strategy for this year is to fortify our commercial business with our partners. In short term we do not see big results, but in long-term, definitely we see a huge success," he said.
Meeting demands
We have transformed ourselves to meet commercial demands as the market is also transformed from channel retailer market to commercial market.
"LG is keen to strengthen its human resources by expanding recruitment to provide in-house and outsourced professional training to strengthen its competency. We are keen to grab professionals of any origin at any cost to boost profitability," he said.
LG MEA contributes about seven per cent to the group's growth.
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