LG plans foray into computers

LG Electronics is considering the introduction of its branded PCs and notebooks in the Middle East, according to a senior official.

The issue has already been sounded out to top management at LG Electronics's South Korean headquarters.

"I expect that by the second half of this year LG will be able to launch its desktops or notebooks in these markets," said K.H. Kim, IT product manager at LG Electronics M.E.

In the last three years, the South Korean major has built up a strong brand image within the consumer electronics and IT component segments.

The success of its mobile phone range, launched just over a year ago, is another factor prompting LG to venture into the PC line.

The personal computer market is weighed heavily in favour of U.S. names on the desktops, while on the notebooks, Toshiba and, of late, Sony, have been able to build up sizeable marketshare against the U.S. contingent.

Incidentally, another South Korean brand, Samsung, recently confirmed that Middle East markets could see the introduction of its laptops and desktops.

IT related products — mostly monitors and optical storage units — make up over 30 per cent of LG's regional revenues of $1 billion.

Year-on-year growth in the division has been averaging over 20 per cent.

Meanwhile, LG Electronics has opened its IT service centre on Dubai's Computer Street. The Dh500,000 investment has been put up by PC International Group, LG's IT products distributor for the UAE.

There are similar centres in Iran and Saudi Arabia, according to Kim.