LG set to enter US computer market

LG Electronics is looking to break into the U.S. computer market in October through its partnership with Microsoft as part of efforts to strengthen its foothold in the world’s largest electronics market, according to LG officials Friday.

The Korean electronics giant said it plans to release stylish laptops in the U.S. that run on Windows 8 on October 26. 

``LG will enter the American computer market with help from MS. Through the collaboration, LG expects its computer business to grow effectively,’’ said an LG source familiar with the matter.

The official added LG senior executives are currently working on detailed strategies to make inroads into one of the biggest computer markets in the world.

LG executives handling the computer business recently visited top U.S. retail channels including Best Buy to find ways of expanding there, another company source said in a telephone interview. 

``We are not interested in desktop computers because demand for the devices is too low. LG push its all-in-one PCs and laptop businesses in the United States,’’ the official said. 

The decision looks somewhat risky because chances are low that LG could yield visible returns in the near future through sales of its Xnote laptops in the United States dominated by firms such as Hewlett-Packard, Apple and Dell.

LG has, so far, only achieved sales of its notebooks in Europe and China due to a lack of product awareness but the United States is the world’s biggest laptop market.

The Seoul-based outfit had earlier decided to sell its computer business following lackluster performances. Amid explosive demand for Web-connected portable devices such as tablets and smartphones, traditional computers are losing their luster. 

LG sold some 200,000 notebooks in the first quarter of this year compared to 320,000 in the first quarter of last year. In Korea, it has maintained second place with an 11 percent market share, however, the company is ranked ninth globally, according to market research firm Gartner. 

``The withdrawal plan didn’t materialize as it’s not easy to find new owners in this volatile environment,’’ said the LG official.

Rival Samsung is heavily increasing spending to boost its computer business because it believes corporate awareness of the company and partnerships with outlet channels are at a level stable enough to push the once negligible business.

Samsung has exhibited its notebook lineups that use Windows 8 software. Gartner said the firm ranked seventh in the global laptop market at the end of the first quarter of this year with a 7.1 percent share.

``LG hopes to better compete with Lenovo of China and Asus of Taiwan for high-end notebooks by rolling out various models, moving from budget products to premium ones,’’ said the official.

Last Friday, LG Electronics also unveiled its plan to release robot vacuum cleaners in the U.S.

The move to expand its presence in America is an attempt to offset a decline in profits caused by setbacks in the firm’s mobile phone and television businesses.

``LG Electronics is in negotiations with several big U.S. retailers as LG has keen interests in the American robot cleaner market,’’ said Kwon Taek-ryul, a senior LG Electronics executive.

He said the models to be released in the U.S. will be different from local ones in terms of specifications and pricing because of differences in lifestyles between Koreans and Americans.’’

This article first appeared on The Korea Times by Kim Yoo-chul: LG set to enter US computer market


[My Take]

All-in-on computer, TV, and monitor they say huh? So should I choose this over their own LG Cinema 3D Smart TV products?