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LG forecasts slower phone sales in region for 2008
Electronics manufacturer LG said on Tuesday that mobile phone sales in the region will be down this year, with less than 10 per cent growth forecast.
- By Suzanne Fenton, Staff Reporter
- Published: 23:50 October 14, 2008
Dubai: Electronics manufacturer LG said on Tuesday that mobile phone sales in the region will be down this year, with less than 10 per cent growth forecast.
This is in stark comparison to the last two years, where LG saw 100 per cent growth. "In 2006 and 2007, we made 100 per cent growth, even though our market share is four or five per cent.
"But sales in 2008 will be less than our expectations. Although globally we're doing very well, here [in the region] we're not meeting our target this year, so we'll just see less than 10 per cent growth which I'm very sad about," said K.W Kim, chief executive officer of LG Electronics, Middle East and Africa region.
Kim put the predicted low sales down to a lack of what he called "region-specific" products which LG has so far "neglected".
"That's why we've prepared for next year with region-specific products, like this Wael Kfoury phone," Kim said.
LG mobile phone sales in the Middle East and Africa in 2007 was worth $400 million (Dh1.47 billion).
The company's global outlook, however, is bright.
"Globally, we enjoyed a third quarter growth. Our forecast for the end of the year is $14 billion. At the end of 2007, our global sales was $12 billion," Kim said.
LG currently holds nine per cent of the global market share in handsets and is ranked number four in the world, although the gap between numbers four and three is very small, according to Kim.
Kim was speaking to Gulf News on Tuesday after LG's launch of their limited gold and black version of their handset, the KF510. Arabic music star Wael Kfoury was announced as their brand ambassador.
The new handset will retail at Dh840 and LG expects to sell one million units as Dubai is the marketing hub for this region.
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