New iPhone will take away major South Korean market share from LG and Samsung

No matter how they label their new products, ‘iPhone hunters,’ ‘iPhone killers,’ Samsung Electronics Corporation (SEO: 005935)and LG, two of the largest mobile phone producing companies of South Korea will face tough competition from the new Apple iPhone 3G.

According to the data of Strategy Analytics, till now, LG enjoyed a sales growth four times higher than the industry average in South Korea and Samsung two times. Now, after the release of new iPhone model at a low subsidized price could take away major market share of LG and Samsung in South Korea.

Yankee Group analyst, John Jackson, said that you would not need an analyst to tell you that a low subsidized price for the most-anticipated gadget ever was going to move huge amounts of iPhones in finite number of channels through which they would sell. It would hurt the Korean producers in key high-end segments.

Not only Samsung and LG but other major mobile phone companies like Motorola (NYSE:MOT) and Sony Ericsson are also expected to face a tough competition against the new iPhone. The latest model Apple iPhone 3G offers phone, iPod media player, web browser and faster internet access on advanced wireless networks. The Apple iPhone 3G will cost $199. From Jully 11, it would hit the market. According to Jae Lee, Daiwa Securities analyst, now it would be the best time for Korean makers to trim the fat from their cell-phone prices or else, they would not stand a chance in front of the iPhone.

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Reuters

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LodgeNet Interactive Corporation joins with LG, Philips and Panasonic

LodgeNet Interactive Corporation (NASDAQ:LNET), a leading media and connectivity solutions provider in the USA, has joined with LG Electronics, Philips and Panasonic for providing a more HDTV solution for hoteliers. Under the partnership, the above mentioned companies will provide HDTV with “plug-and-play” system designed by LodgeNet. This will lower hotel owner’s total solution cost, enable faster room openings, shorten the time of rooms out of service, and enhance total system performance. Trading Markets.com reports:

LodgeNet explained that HD Built-In TVs come "out of the box" with the ability to support Pro:Idiom encrypted HD free-to-guest (FTG) and video on demand (VOD), and are compatible with LodgeNet and/or legacy OnCommand systems so hoteliers do not need to purchase any additional hardware or software. This approach to HD means that hoteliers won't need to make additional room visits to install FTG or VOD interface hardware, and they can be confident of full system compatibility from day one. These integrated TVs can reduce a hotelier's total solution cost by eliminating additional room visits for installation and reducing the hardware requirements from FTG and VOD service providers.

With these new plug-and-play television sets, hotel owners will be able to generate more income from new construction properties by opening new rooms faster and reduce the revenue loss from properties undergoing renovations or a brand refresh. Scott C. Peterson, President and CEO of LodgeNet said that working with these world-class manufacturers to offer the HD Built-In and HD Certified TV program was a win in every way for their hotel customers.

LodgeNet Interactive Corporation provides its media and connectivity solutions to hospitality, healthcare and other guest-based businesses.

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Trading Markets.com

LG opened its new air condition production facility in Riyadh

Top South Korean electronics company LG Electronics (SEO:066575), in collaboration with H.G. Ibrahim Shaker Co. Ltd., set up a new air condition producing plant LG-Shaker Co. Ltd. in Riyadh. Today, the new plant was inaugurated. Saudi Arabian Minister of Commerce and Industry Mr. Abdullah bin Ahmed Zaniel Ali Reza and South Korean Ambassador to Saudi Arabia Lee Jaegil were present in the opening ceremony. Top officials of the two companies were also present in the ceremony. Al Bawaba reports:

Addressing opening ceremony, Mr. Y.H. Lee, the CEO of LG Digital Appliance Company said, “Saudi Arabia is the biggest market in the Middle East. And LG-Shaker Company will build the complete local business system from product development to production. We plan to further strengthen our global network of Air Conditioning business by utilizing all the regional production facilities including LG-Shaker factory, which we inaugurate today. With the construction of this new air conditioner production facility in Saudi Arabia, LG now has eight air conditioner production facilities in local markets around the world.”

H. G. Ibrahim Shaker Company. Ltd., Sole distributor of LG Air Conditioners, is the biggest partner for LG’s business in the world and targeting to sell accumulatively US$ 1.4 billion by 2011 starting from the year 2007 onwards in domestic market.

Located at Al Taweer Industrial City, the joint venture cost $35million. The new plant will produce 250,000 units per year and the number will be doubled in the next five years. LG has 49% share of the company and H.G.Ibrahim Shaker Company and other partners 51%.

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Al Bawaba