Business | Technology

LG Gulf sees more than 10% rise in this year’s revenue

South Korean company sees more than 100% year-on-year growth in mobile phone division in the next two years

  • By Naushad K. Cherrayil; Staff Reporter
  • Published: 12:50 April 25, 2013
  • Gulf News

  • Image Credit: Courtesy: LG Electronics
  • D.Y. Kim, President of LG Electronics, Gulf FZE.

Dubai: LG Electronics Gulf sees more than 10 per cent increase in revenues this year to more than $715 million (Dh2.6 billion) compared to $650 million last year, fuelled by Smart TVs and smartphones.

“2013 is very promising for LG, especially for the mobile phone division. We expect more than 100 per cent year-on-year growth in the next two years,” D.Y. Kim, President of LG Electronics, Gulf FZE, told Gulf News in an exclusive interview.

He said the robust growth in the mobile division is not only in the region but also across all other regions.

When asked why LG’s going to the market strategy is weak, he responded that LG has priorities. “This region is very small. We cannot launch the products worldwide at the same time, so we focus on bigger markets first,” he said.

Even though our product launches are delayed, LG has some “exclusive features” on its phones and “we get a very good feedback from our distributors. Our models in the mid-range and high-end models are doing well worldwide and that is why we have launched Optimus G and L Series II in the UAE,” he said.

LG is expected to launch its 5.5-inch flagship model — LG Optimus G Pro — before the end of this year.

LG Optimus G Pro is one of the models which have the ability to compete with Samsung Galaxy S4. The G Pro is likely to be unveiled in the US on May 1.

Demand

He said that phablet (phone/tablet combo) is here to stay. The demand for this will increase and many vendors will move into this space.

LG bets that its high-end models with innovative features and faster 4G LTE connection will help it boost market share and brand quality.

The South Korean company is facing a stiff competition in the television space from Samsung and Sony.

He said Samsung and Sony are the top two TV players in the region, but by 2015 LG will clearly become the leader.

“Samsung is spending a lot on marketing and getting market share, but LG unfortunately does not have the ad spend to compete with them. We cannot compete with Samsung in the money game.

“We spend our resources on innovation like OLED TVs and 4K TVs. We launched 4K TVs much before Samsung and will be the first to launch OLED TVs in the second half of this year,” Kim said.

LG will be launching its 55-inch OLED TV model first in the market and other sizes at a later stage.

Smart TVs contribute more than 30 per cent to LG Gulf.

“We have innovative products like 84-inch 4K TV and will be launching smaller models this year. We have sold around 100 units so far in the region.

Gulf News
Quick Access

  1. Markets

  2. Economy

  3. Property

  4. Aviation

Business Top Stories

  1. Dubai’s hotel boom has designer labels

  2. Up for sale: Dh4,045m for a Gherkin

  3. Full steam ahead for the Gulf’s rail network

  4. Barclays net falls as investment income sags

  5. Russians’ alarm grows over Putin tactics