South Korean electronics and home appliance manufacturer LG has invested US$50 million in East Africa in order to gain a foothold in the market for its mobile-phone handsets.
The investment will be used to import a range of premium mobile handsets, create awareness through marketing the handsets and carry out market research for the products, said Byung Su Lee, LG Nairobi Liaison Office general manager.
With East Africa being an emerging mobile-phone market, LG has earmarked $2 million for marketing in Kenya, Uganda, Tanzania, Burundi and Rwanda, Lee said.
LG hopes to beat competition by cheap handset makers from the Far East by providing handsets targeted at the premium low, medium and high ends of the market, he said. The company projects a 50 percent increase in sales, from the 500,000 handsets sold last year to 1 million by 2009.
LG has also invested in longer-lasting batteries for use in rural areas, where electricity penetration is low.
“The longer-lasting battery power allows for more convenient use of the high-technology features like cameras, MP3 players, radio and video players,” said LG regional marketing manager Anthony Hutia.
IDG News
